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Quest Means Business
Airplane Debris Found on Island in Indian Ocean; Thousands of Migrants Attempt Calais Crossing; Migrant Crisis Causing Disruptions to Critical European Trade Route; Facebook Takes on YouTube; Looking Back through Windows; U.S. Says Reports of Taliban Leader's Death "Credible"; Stocks in China Break Three-Day Losing Streak; IMF: Eurozone Recovery Fragile But Improving; New Apps for Eating in Chefs' Homes; EC Investigating Price Gouging at Disneyland Paris; Wildlife Researchers React to Death of Cecil the Lion. Aired 4-5p ET
Aired July 29, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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MAGGIE LAKE, CNN HOST (voice-over): A triple-digit gain for the Dow as markets finish higher on Wall Street. It's Wednesday, the 29th of July.
Tonight, mystery plane debris discovered in the Indian Ocean. Now the inquest begins to see if it's the lost (INAUDIBLE).
Crisis in Calais: authorities struggle to stop migrants at the Channel Tunnel.
And thumbs up or thumbs down? Facebook earnings are due out this hour. I'm Maggie Lake and this is QUEST MEANS BUSINESS.
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LAKE: Good evening. Tonight a possible clue in the disappearance of Malaysia Airlines Flight 370. Police on Reunion Island off the coast of
Madagascar have found what appears to be a wing flap. Investigators are looking into whether the debris could have come from MH370. The Boeing 777
with 239 people on board vanished more than 16 months ago.
A member of the French air force stations on Reunion Island told CNN French air accident investigators have been notified.
MH370 took off from Kuala Lumpur bound for Beijing. Police found the debris some 3,500 miles away off the coast of San Andre, a community on
Reunion Island. The island is located some 380 nautical miles off the coast of Madagascar.
David McKenzie is following the development from Free State, South Africa, and he joins us now live.
David, what can you tell us and why do people think it's even possible this is from the missing plane?
DAVID MCKENZIE, CNN CORRESPONDENT: Well, certainly, it's been such a mystery, this disappearance of MH370 that any conceivable clue needs to be
treated seriously. And, Maggie, the air force individual that we spoke to said it's way too early to speculate -- way too early to ascertain if this
is part of that missing plane.
But it's an intriguing find, nevertheless. They found this part of the plane, which experts say appears to be potentially from the wing or a wing
flap. But we don't know that even for sure. But you see the size of it. It's a sizable piece of wreckage. And now they will be investigating
whether it is part of MH370 or part of some other plane crash in the recent or distant past.
Now they say they have alerted the authorities, the BEA, the investigating authorities in France, a very respected investigating group, who deals with
accident investigations. Now they say they might investigate this piece of wreckage there in the Reunion Island, a French territory, or send it back
to France for more investigations.
There should be some telltale markings on that piece of wreckage to allow experts or engineers to find out relatively quickly what type of plane it
was from -- Maggie.
LAKE: David, certainly the area seems so far away from where people were searching for the plane itself.
What can you tell us about this?
Is this a remote area? Is it difficult to get to?
MCKENZIE: Well, Reunion itself is remote, an island; as I said, it's a French territory. I mean, it's not that difficult to get to in terms of
getting there. But for a piece of wreckage to get there, it would be quite extraordinary. But not entirely impossible. If you look at the ocean
currents that move in the Indian Ocean, it is a straight shot. And one set of currents from the area, they believe, potentially, the MH370 went down,
to get to Reunion. And you have had cases in the past of bits of wreckage going a far distance with plane crashes and other events like this.
Now there's another thing to bear in mind. There have been several accidents, crashes in that particular region of the East Indian Ocean over
the past few years, most notably comes to mind in 2009, a passenger plane crashed just off the Grande Comore Island. It was an extraordinary event
because just one person survived.
Now that could be one type of wreckage that they could have been finding.
The size of this indicates it's not something entirely insignificant, whatever it is. But we'll only know once we can get those confirmations.
Boeing, the manufacturer of the 777, is saying it will not comment at this point. But certainly they would get involved if it came down to an
engineer being needed to specifically say whether this was that type of plane and whether it was that plane.
The MH370, which has stumped people and vanished for more than a year now and worth remembering, more than 239 passengers and crew on board, most of
them from China, they'll be watching this of course very closely as well -- Maggie.
LAKE: They certainly will. David McKenzie, thank you so much.
[16:05:00]
LAKE: Now CNN safety analyst David Soucie has been tracking the search since MH370 vanished more than a year ago. He joins us now from Denver,
Colorado.
And it's amazing; as soon as this news started to circulate, so many people started talking about this. The interest still remains so high over this
mystery.
Based on what you've heard, David, what is your feeling about this?
Do you think it's possible this is from the missing flight?
DAVID SOUCIE, CNN SAFETY ANALYST: Well, first of all, like you mentioned, it's too early to tell. But jumping forward, we need to be very cautious
about this. There have been other accidents in that area.
However, in looking at this part myself, having looked at this part on an aircraft on a 777 removed, it does have similarities. There are some
things that lead me to believe it.
But there's also some things that make me think that it's not this part from a 777 because of the fact that the zinc chromate paint, which is a
green paint that's used on the inside interior of this part that we'd be speculating that it is, would be more prevalent in my mind.
So unless it's been painted again in some other fashion, like in a repair or something like that, it would lead me to believe that it's not from this
particular model of aircraft.
However, I'm not discounting it in any stretch.
LAKE: And as David mentioned, it's important to take any kind of lead very seriously.
What happens now with the investigation?
We were with David, talking about the fact that engineers may be necessary to verify this.
Who leads this and what kind of timeframe do you think we're looking at?
SOUCIE: Well, there's a couple of things in -- within the timeframe. One of them is that they have to make -- be very, very confident in what this
part is before anyone's going to make any kind of public statement whatsoever. At least anybody in the investigation.
Now there's information on this part that will conclusively tell us whether the aircraft -- this is from a 777 and if it is from a 777, there was a
part from MH370, so that in itself does not take that long and can be verified by photos.
However, I wouldn't expect in 2-3 days for the investigation to come out and say this is indeed a part. We may be looking at a week to two weeks
because they'll have to actually either send someone there or send the part to the investigating laboratory.
LAKE: And, David, if they find that it is a part from a plane and, frankly, if it's not MH370, it's still going to be an important piece of an
investigation to another crash if they're able to come up with it.
Can you determine what happened, based on this piece of debris or can it give you any further clues?
Or do you really need to have that black box?
SOUCIE: There are two clues that are really unique about parts that you -- that would have drifted this far. One is that you know, of course, how
long it's been in the water and what debris is on it; you might be able to get clues as to where it traveled from.
But secondly, you can also look at the way that it's broken apart to determine the entry into the water, whether it was a skid-on, kind of a
ditching, or whether it was a sudden penetration of the water, just by the way the metal is torn and how it's -- how it came off of the wing.
And I can see in these photos that there are some evidence that this was a sudden tear. It wasn't something that slowly worked its way off and then
caused the accident. This is something that's subsequent to some event, either running out of fuel or perhaps a -- we don't really know at this
point obviously -- but there are clues that are available from what's on that part.
LAKE: All right. David Soucie for us live from Denver, we're going to follow this very closely and we know you will in the coming hours for us.
David, thank you so much.
Now after the break, French police prepare for another dramatic night at the Channel Tunnel as thousands of migrants attempt to make the potentially
deadly crossing to England. We're live in Calais.
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LAKE: The sun is setting in Calais and French authorities are preparing for another swell of illegal migrant crossings. In the past two days
alone, some 3,500 people have attempted to make their way through the Channel Tunnel and into the U.K. Officials say at least one migrant died
on the treacherous 50-kilometer journey. Seven more have been killed in just the past two months.
The situation in Calais is quickly becoming an international crisis. Politicians in both the U.K. and France are blaming each other for failing
to stem the tide of migrants.
CNN's Fred Pleitgen is in Calais with more.
And, Fred, this is -- the numbers are staggering here and many people, especially from the businesses, both in the U.K. and France, are -- believe
that they're just overwhelming local police.
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Oh, they certainly are overwhelming local police. And we can see that shape up
here. As you said, as the sun is setting right here in Calais, we are actually right now sort of on the front line of where all of this is
happening. We're right by the fence that leads straight towards the railroad tracks that go into the Eurotunnel here on the French side.
If we pan around a little bit, we can see that there's a large police presence, but there is also a much larger presence of migrants, who are
already getting together here. And many of them, we've already seen, have tried to make the charge towards that area where you get into the
Eurotunnel.
In fact, less than an hour ago, there was an incident here that we were able to film, where there was a police barricade, a police car that was on
a road and all of a sudden a group of migrants gathered and then also made a charge for it and tried to go towards these fortifications.
Now we have heard from both the British and the French governments that they want to increases those fortifications. They want to spend more money
on barriers, on fences and on things like that.
But quite frankly, we've been in the main squatters' camp that is here in the town of Calais. And we spoke to many people from Eritrea, from Sudan,
from Syria, from Afghanistan, from Pakistan. And many of them told us quite frankly they want to go to the United Kingdom and they're not going
to let this tunnel hold them up.
So certainly many of these people seem very, very determined. And when you take a look at the journeys that some of these people have gone through
already, just to get to here, it certainly is not beyond reasonable doubt that they would make this attempt even after what happened yesterday.
In fact, I talked to one young man from Syria, who was there yesterday when a man from Sudan here was hit by a truck and killed.
LAKE: Absolutely. They're fleeing desperation, many of them have family they're trying to reconnect with.
Fred, it's sort of an extraordinary scene, when you see them all just standing there. You know that there's going to be a confrontation.
Why aren't they detained before they try to make the journey or picked up on the other side? Presumably they're not doing anything illegal, I
suppose, until they try to make the run for it. Explain that to us.
PLEITGEN: Well, absolutely. And also, quite frankly, there's not enough police here to do all of that. If we try and pan over here one more time,
we can see that there's a small line of police officers here.
This is sort of the front line and we do have to say that the police has increased their presence but also if you look at the squatters' camp that's
here in the town of Calais, there's anywhere between 3,000 and about 7,000 people living in there. It's impossible to detain all of them.
There's one thing that the British government has said, where it's said, you know, you have to cede to get these people somewhere else. There's
been talk of getting rid of this camp, of tearing it down. But right now, that simply isn't feasible. There is no other place for these people to
go.
And what's going on is that the French government has started putting water lines in that, slowly putting some electricity in as well. This camp, this
squatters' camp here in Calais, is more and more becoming less makeshift and more and more becoming sort of a more permanent place.
There's some people who've been staying here for more than a year. So it is impossible to detain these people before they've done anything. And
quite frankly, right here on the ground from what we're seeing, there's not enough police officers here to do that anyway.
They are trying to keep these people from getting past the fortifications, from getting into the area, where they could come close to the trains, not
only of course because it disrupts traffic, Maggie, but because it is also very dangerous for them to jump onto a moving train or to try and jump onto
a truck and get into the tunnel that way.
LAKE: And certainly it's a crisis and one that a lot of people are saying won't be addressed until you start to deal with some of the long-term, the
root causes of what's driving these people to this action.
Fred Pleitgen on the scene for us, thank you so much, Fred.
Now the chaos at Calais is causing major disruptions, as Fred just said, to one of Europe's busiest trading routes. The Channel Tunnel is a critical
gateway between the U.K. and mainland Europe, stretching from Dover in England to the French coast at Calais.
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LAKE: Just take a look at the numbers. Last year more than 20 million passengers and more than 20 million tons of freight travelers through the
tunnel by both rail and road. In total, Eurotunnel estimates that more than $300 billion worth of trade travels through the tunnel every year.
The French and U.K. governments are both arguing with Eurotunnel over who should pay for the additional security. Speaking earlier, the British home
secretary said all sides need to work together.
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THERESA MAY, BRITISH HOME SECRETARY: What we are seeing at the railhead at Coquelles at the moment is, as we are putting extra security fencing in,
there have been migrants particularly trying to get into the Eurotunnel and on to the trains before that security fencing is going up.
One of the outcomes of the meeting today was some more urgent work with government departments but also with Eurotunnel at what further measures
can be taken at Coquelles to prevent people from getting into the tunnel.
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LAKE: Richard Burnett is the CEO of U.K.'s Road Haulage Association. He told me he's frustrated his warnings haven't been taken seriously and he's
looking for a major escalation in the response.
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RICHARD BURNETT, CEO, U.K.'S ROAD HAULAGE ASSOCIATION: I gave evidence at the Home Affairs Select Committee two weeks ago and we said that we had a
crisis situation two weeks ago.
It's escalated even more now and demands that we've requested are that we need the French to deploy the army, to contain, to control the situation
and make sure that the migrants are kept away from vehicles and drivers and that constant threat that drivers are facing on a daily basis is removed.
That hasn't happened yet. And that's what we're asking for. That's what - - the action that we're asking for.
LAKE: And what are you hearing from your people on the ground? Is this is a situation that has just become too big for the French police alone to
deal with?
BURNETT: Absolutely. The drivers that are driving into bergere etinalande (ph) and to the ports on a daily basis are facing thousands of migrants
that are trying to get onto their vehicles.
The situation is just uncontained. That threat on a daily basis, these guys are just trying to do their day-to-day job and they're facing
intimidation, threats of violence. You know, we've had examples of metal bars, knives and even guns being pointed at drivers.
So this is escalating out of all proportion. It's lawless.
LAKE: You know, a lot of people are saying you can increase the security. But given the desperate situation these people are fleeing from, it's
unlikely to do anything to stop it or maybe slow it. And really if you want to address this, you need to get to the root problem.
BURNETT: I agree with that. I think there are two approaches that are required. One is an immediate approach to contain the situation, the
control the situation and make sure that our drivers are safe in simply flowing through Calais. And then there needs to be a longer-term solution,
which is to resolve the flow of migrants across the European countries, coming to Calais, to get into the U.K.
That's a long-term solution. That's something that the government, the U.K. government and the European governments need to work on collectively
together.
LAKE: We know that there has been a human cost to this. We've seen migrants die in the attempt to get through.
What about the economic disruption?
How severe has this been and is it just temporary or is this going to have a lingering effect?
BURNETT: The effect over the last 3-4 weeks has been significant. The cost of this has been running into billions. The cost per annum in terms
of goods that are being written off is, again, running into 1 billion. We've also got the impact on the haulers that are being delayed. But we've
also got the cost of the slowing of the supply chain.
So we're not getting product through from Europe. That means empty shelves in some cases and retailers looking for alternative solutions in order to
get their product from parts of Europe into the U.K. to supply elements of food.
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LAKE: Just minutes ago, Facebook released its second quarter earnings. We'll have an in-depth look at the results from the social media giant --
that's next.
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LAKE: Facebook has just released its second quarter earnings. The social media giant beat Wall Street expectations with revenue of just over $4
billion.
Samuel Burke joins me now with the details on the report, at least the preliminary one.
Samuel, this is just crossing right now. Looks like they did pretty well. Looks like a strong quarter.
SAMUEL BURKE, CNN CORRESPONDENT: That's right, earnings per share ahead of Wall Street's expectations, as was revenue. But it's interesting; the
stock is down about 3 percent right now and that may be because costs are up so much at Facebook, 72 percent -- actually 82 percent -- Facebook has
been warning they're going to spend to get ahead. That's paid off for them long-term. Many times they've paid $1 billion for Instagram, for instance,
and that seemed like a lot of money to us at the time. But now they're getting the fruits of that labor.
But it looks like maybe the market isn't so happy that they're spending all that money right now.
LAKE: Yes. So investors always get a little bit nervous about that. And again, this -- the headline just crossing, we're going to have a conference
call, which is so important in terms of figuring out where they're spending the money and if investors like where they're headed with that.
One of the things that we're likely to also get a lot of questions on from investors and analysts is video. Facebook's been making a big push in
video. It's unclear or whether it's paying off or to what extent it's paying off.
BURKE: And that's one of the places that Facebook has spent a lot of money. They've had to make investment in applications like Instagram so
that they can not only get videos there, but also so they can spend money to get advertisers to post their videos there.
At the end of the day, you cannot log on to Facebook now without seeing videos.
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BURKE (voice-over): Cats in mailboxes, bitter babies and music from artists like Taylor Swift have been YouTube's bread and butter since 2005.
Now it looks like bad blood is brewing between YouTube and Facebook.
Feeds on the social network are filling up with videos of daredevil dogs, surfing sensations and newsclips from outlets like CNN.
UNIDENTIFIED MALE: cougarlife.com, which I'm sure you're not familiar with, Hala --
HALA GORANI, CNN CONTRIBUTOR: It's not in my Favorites tab.
BURKE (voice-over): And the autoplay feature on the world's biggest social network is adding up to huge numbers. Facebook says it's costing 4 billion
video views a day.
UNIDENTIFIED MALE: This is a huge trend because Facebook's ultimately the platform where you discover content. And if you start discovering content
on Facebook more and more, you'll stop going to YouTube eventually.
BURKE (voice-over): Facebook's already cutting into YouTube's piece of the pie. The number of YouTube videos before sharing on Facebook at least is
declining as people opt to upload their videos straight to their profile pages. And unlike the Jessie J price tag music video, it's probably all
about the money.
Facebook's adding more and more videos from advertisers, a potentially massive revenue stream and just this month the company announced a revenue
sharing program with video creators similar to YouTube's. And Facebook's trying to lure over some of YouTube's biggest stars.
UNIDENTIFIED MALE: My conclusion and final judgment -- yes.
BURKE (voice-over): The host of a top YouTube news channel has just launched a new show, "Final Judgment," exclusively on Facebook.
YouTube isn't just going to let Facebook put a ring on it, not without a fight. YouTube just snagged a major MTV executive in its push for original
programming and its parent company, Google, just had a knockout earnings report, bragging that the average viewing time is now a whopping 40 minutes
per visit to YouTube on mobile.
BURKE: The biggest threat that YouTube faces, reports that Facebook is now in talks with record labels.
BURKE (voice-over): If music videos end up on the big blue social network, it would mean billions of views and like really Facebook thing --
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BURKE: And advertisers are willing to fork out more money to put their advertisements around videos than they are around text. And that's why
that's so important. We're going to be listening on that conference call to hear if videos on Instagram are paying off the way they are on the
Facebook's -- on Facebook's main platform.
LAKE: Yes, this is such a critical point of view. Mark Zuckerberg has gotten really good marks for having a long-term vision, sort of ignoring
that short-term pressure and really trying to stay ahead of the competition and build up that user base.
Samuel, the question always is, do you alienate users by doing that? Does it get too noisy? Does it interfere too much with your experience?
BURKE: And that's a lot of people have said that the videos were distracting them at first. They're on autoplay, which is good because it
brings people in but some people say that it distracts them there. Look, big picture, it's worked for him.
But he's made mistakes along the way. Some of the apps breaking them apart. That has not gone down very well with people. They don't like
having to switch from one app to another and some of the apps that he's come out with have just disappeared at the end of the day what it means
monetarily for Facebook, even if they were to lose some users because of that which is a big if, because we keep on seeing their users go up and up
including in this report just now, we see that users went from 1.4 billion -- 1.44 billion to 1.49 billion.
It's worth so much. This is what people -- people want original content. They want video content. That is what the advertisers need to fork out the
dollars. And boy, are they forking out the dollars.
LAKE: All right. It's going to be really fascinating, as we know that, those conference calls could really influence the share price. We're going
to watch it very closely.
Samuel, thanks so much.
Now Windows 10 has arrived. Users of version 7 or 8 can download the system upgrade for free. Let's take a look back at 30 years of Windows
evolution. Windows 1 came out in November 1985 before the mouse was a common computer accessory. Early versions came with Minesweeper and of
course Solitaire to help users get used to using the computer mouse.
Now with Windows 95 and 98, Microsoft introduced the start menu and Internet Explorer. Windows 7 arrived in 2009; users found it fast and
stable. But with Internet Explorer pre-installed, it became the subject of a European Union anti-trust investigation.
Users objected when the start menu disappeared from Windows 8, which favored a touchscreen-friendly interface.
Microsoft skipped 9 and went directly to Windows 10. The version blends old elements with new, bringing back the start button, adding a voice
controlled assistant and replacing Explorer with its new browser, Edge.
It is the question on every trader's list: when will the U.S. Fed hike interest rates? Janet Yellen gave some tantalizing clues on Wednesday.
We'll tell you more after the break.
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[16:30:08] LAKE: Hello, I'm Maggie Lake. Coming up on the next half hour of QUEST MEANS BUSINESS Brussels takes on the House of Mouse. Disneyland
Paris is accused of some suspicious ticket prices.
And the U.S. comedian Jimmy Kimmel is raising money for the group who tried to protect Cecil the Lion. I'll speak to the man who led the project at
Oxford University.
Before that, here are the top news headlines we're following for you this hour. Police on Reunion Island off the coast of Madagascar have discovered
-- recovered -- what appears to be a piece of an aircraft wing.
Investigators are looking into whether it could have come from Malaysia Airlines flight 370. The Boeing 777 vanished in March of last year shortly
after takeoff from Kuala Lumpur.
After years of speculation, Afghanistan's government says the Taliban leader Mullah Omar is dead. It says he died in a Pakistani hospital in
2013.
Speaking to journalists in Washington, the White House deputy press secretary said they were treating those reports as credible. Eric Schultz
said the United States was still looking into exactly how Omar may have died.
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ERIC SCHULTZ, DEPUTY WHITE HOUSE PRESS SECRETARY: We are aware of the death of -- reports of the death -- of Mullah Omar. Without commenting on
the specifics of these reports, we do believe the reports of his death are credible.
Beyond that, I'm not going be in a position to comment on the specifics surrounding his death. I can tell you that the intelligence community is
looking at these reports and continues to assess the circumstances around his death. But beyond that, I'm not going be in a position here to speak
candidly about what we know at this point.
I'm sure that when the I.C. has an update or anything determinative, they'll be in a position to talk to you.
(END VIDEOCLIP)
LAKE: The body of a migrant from Sudan has been found near the Channel Tunnel in Calais. French officials say more than 3,000 migrants have tried
to enter the tunnel to try to reach the United Kingdom over the past two days. Britain's home secretary says the U.K. and France will try to focus
on stopping the migrants from traveling in the first place.
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THERESA MAY, BRITISH HOME SECRETARY: We're working very constructively with the French government. The French government has been putting
considerable effort into this issue. More police have been put into the ports and we're working with the French government on a number of other
measures that we can take to ensure that we are reducing this problem.
Because I say ultimately we're going to deal with this problem by dealing with it at source by ensuring that people aren't making this journey in the
first place.
(END VIDEOCLIP)
LAKE: Two men accused in the death of the famed lion Cecil have been released on bail by a court in Zimbabwe. Authorities also want to question
the American dentist Walter Palmer who admitted to killing the lion. Palmer says he believed the hunt was legal.
It is the most pressing question on Wall Street. Today the Fed offered some clues as to when it will raise interest rates. The Fed said it had
seen some solid gains in the labor market but would wait for quote, "further improvements" before hiking rates.
U.S. markets moved higher after the statement came out.
In China stocks broke a three-day losing streak. The Shanghai Composite ended more than 3 percent higher following a late rally. Some analysts
suspect that was caused by the government buying shares to prop up prices.
It would be the latest in a long string of government interventions. As Andrew Stevens reports, it's raising questions about the fundamentals of
the market.
(BEGIN VIDEOCLIP)
ANDREW STEVENS, CNN ASIA-PACIFIC EDITOR: Markets at their most fundamental are pretty much the same all over the world -- people buy and people sell.
When a product is hot when it's in season, the price goes up as demand goes up. When it's out of season, demand drops.
Stock markets are a more sophisticated version of that elementary principle. Most markets around the world operate in the same way except at
the moment China.
PETER CHURCHOUSE, THE CHURCHOUSE LETTER: Now essentially the market is being pretty much governed by government activity.
STEVENS: Peter Churchouse has been analyzing Hong Kong and China markets for 35 years. The former head of research at Morgan Stanley is now running
his own investment company.
CHURCHOUSE: The government that's buying stocks in various forms, various agencies, they are forcing companies to do the same thing, they've
instructed pension funds and life insurance companies to buy stocks to keep the market from collapsing too far.
STEVENS: Because the other side of this of course is the question -- is this market with all this government buying now a one-way bid? That the
government is basically putting a floor under this so it can only go up?
[16:35:01] CHURCHOUSE: Well, putting a floor under it is not saying it's going to go up. Putting a floor under it says it's going to prevent the
market from completely disintegrating. And I think that's what they want to do.
STEVENS: The distortions in this market must make someone like you very, very disappointed in this whole development -- this whole market theory now
which China has been trying to embrace. OK, we know capitalism with Chinese characteristics, but this is much more like communist
characteristics, isn't it?
CHURCHOUSE: I'm disappointed not so much with intervention per se, but I'm disappointed that it seems to be uncoordinated and very heavy handed. Much
of this intervention smacks of a police state -- that you're telling people they must buy, they're not allowed to sell.
STEVENS: But to others the jury is still out on China's actions. Michael Liang manages $250 million worth of funds invested in Shanghai and Hong
Kong.
MICHAEL LIANG, CIO, FOUNDATION ASSET MANAGEMENT: Whether the Chinese government stepped in at right time and doing the right thing, the right
procedure -- that's probably for future judgment.
STEVENS: So basically you're not judging at the moment what the Chinese government is doing?
LIANG: Well I mean if I have to give my view on it, I think they came in in a rush, they're not prepared for this. So I think there is a lot of
questions to be answered on, but whether they should step in or not, I think it's like 2008, you know, what the Fed have done, you know. 1997,
'98 the Hong Kong government stepped in.
STEVENS: Does the Chinese government -- do the authorities -- have the financial fire power to hold the line?
LIANG: Oh, absolutely.
STEVENS: And if there is a consensus view it's this -- China's government has the appetite to keep intervening for as long as it takes and the time
span is now being measured in months rather than weeks. Andrew Stevens, CNN Hong Kong.
(END VIDEOCLIP)
LAKE: IMF Managing Director Christine Lagarde says China is not a huge risk to the global economy and is evening becoming more optimistic when it
comes to Europe. Lagarde says the overall recovery is fragile but says the situation is improving in the Eurozone.
(BEGIN VIDEOCLIP)
CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND: I would say that despite trepidations that everybody's familiar with --
particularly in the -- in Greece, the Euro area is beginning to turn the corner.
And we have more upbeat forecasts than we had in a long time.
(END VIDEOCLIP)
LAKE: That opinion doesn't completely match with the IMF's own report this week which says Europe faces a tough economic future. Our emerging markets
editor John Defterios has more from Rome.
(BEGIN VIDEOCLIP)
JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: After recently emerging from three years of recession, word that it would take up to 20 years to cut the
jobless rate in half went over like lead balloon here in Rome.
The IMF report was front page news here in Italy with the focus being on two numbers -- the jobless rate at 12.4 percent and the growing debt pile -
- $2.4 trillion. That's a record representing over 132 percent of GDP, the second highest in the Eurozone.
The reality is Italy is not Greece which has seen about a quarter of its economy wiped out. Nevertheless, Italy has seen its GDP drop by nearly 12
percent in the last seven years alone.
NICOLA BORRI, ECONOMIST, LUISS UNIVERSITY: The economic recession has been very bad in Italy. Probably Italy is the second worst performance as
Greece. And, you know, when people hear that they have to wait 20 more years to go back to their previous living standard is not good news.
DEFTERIOS: Since the economy is such a heated issue here, the Italian finance ministry responded to the IMF report suggesting the Fund was
looking in the rearview mirror and not taking into account the latest reforms. Economist Borri said that's a fair point.
BORRI: I think that the Italian ministry is right in the sense that the reforms that have been implemented and those that are on the pipeline are
going to be able to improve the growth of this country. And so I think that the situation will get better a bit faster.
DEFTERIOS: With growth of less than half a percent and the cost of living rising, Italians are suffering from reform fatigue and this is impacting
the popularity of Prime Minister Matteo Renzi.
In May of 2014, his approval rating was at 65 percent. The latest rating in July of 2015 is just 35 percent. So he's going on the offensive
offering to cut corporate taxes and property taxes as well. It's popular at home but not perhaps back in Washington with the IMF. John Defterios,
CNN Rome.
(END VIDEOCLIP)
LAKE: Is Disneyland Paris taking the Mickey? The House of Mouse is accused of overcharging its European customers based on where they're from.
I'll be speaking to the European Commission about the accusation after the break.
(COMMERCIAL BREAK)
[16:42:03] LAKE: The online review site Yelp has lost a quarter of its value in just one day. Shares fell more than 25 percent after a weak set
of earnings on Tuesday. Analysts say the review website is struggling to keep on top of fake reviews.
And picking out a decent restaurant can be tricky. Now a new set of apps is letting people find local chefs who will let them eat in their homes
instead. James Williams went to try it out.
(BEGIN VIDEOCLIP)
JAMES WILLIAMS, NEW YORK CITY: It's the story of every traveler -- stepping out all alone in a new city with no friends, no food and
absolutely no idea where to get any.
The usual choice -- the easiest, closest and often least appealing option available.
Male: Would you like ketchup, mustard?
WILLIAMS: Yet with a little planning, you can avoid places like these and instead find a home-cooked meal with some new friends. And all you need is
one of these.
On apps and websites like EatWith, Feastly and Cookapp you just sign up, pick your dish and invite yourself to a dinner party with total strangers.
EatWith dinners are reasonably priced and run in over 150 cities around the world.
Male: Good evening sir, welcome to the building.
WILLIAMS: Thank you very much. Think of it as the Airbnb of dining. This feels a little bit like an awkward first date. Let's see how this goes.
(KNOCKS ON DOOR)
Female: Hi.
WILLIAMS: Hi.
SHUCHI NAIDOO, EATWITH CHEF: I'm Shuchi, nice to meet you, come in on.
WILLIAMS: Yes, nice to meet you.
NAIDOO: I'm a private chef. I was looking for a way to sort of market my menus, get a bunch of people to try the food for people who are looking
for an alternative to restaurant-style eating.
WILLIAMS: Chef Shuchi runs group dinners once a week. What's on the menu?
NAIDOO: Oh, We're going to be having a summer-inspired menu today.
WILLIAMS: Oh yes, here we go -- I see.
NAIDOO: So as you could see on the menu, it's going to give you --
WILLIAMS: Five courses.
NAIDOO: The idea is nofin (ph) intuch (ph) with a little bit of seasonal twist.
WILLIAMS: What kind of people come to your dinners?
NAIDOO: So I get a lot of travelers -- people who are visiting the city on business who might be coming with their families and who want to meet a
local and get to know the city.
WILLIAMS: Shuchi accepts everyone who applies. And there they are on cue.
NAIDOO: Hi, welcome. Come on in. Nice to meet you.
Male: How are you? I'm Angelis.
NAIDOO: Good.
Male: Hello, guys.
WILLIAMS: Things begin a little gingerly.
(INTRODUCTIONS)
WILLIAMS: So you've come with your boyfriend. You've come on your own?
ANGELIS NANNOS, CULINARY CHEF: Yes.
WILLIAMS: Is that how --
(CROSS TALK)
WILLIAMS: -- a little bit nervous?
NANNOS: You know, I'm not nervous, I'm like excited. You know, maybe you know, I can meet someone, you know.
WILLIAMS: Yes. And there's the risk. With strangers, each dinner is a roll of the dice. Sometimes you win, sometimes you lose.
You've never had to escort someone out of the building?
[16:45:05] NAIDOO: No. I think they all drink a little bit more than they should if they're having fun. But I did have one guest that was jet-
lagged and fell asleep on my couch.
WILLIAMS: The guests tonight are a smattering of foodies, filmmakers and stay-at-home mums.
NAIDOO: All right, everybody, welcome. We are ready to start the dinner. You can take a seat wherever you want.
Male: Wow. Impressive.
WILLIAMS: In between mouthfuls, conversation slowly begins to flow. After all, the dinner party is the original social network. Who here has been to
one of these dinners before? Put your hand up.
(NANNOS RAISES HAND)
WILLIAMS: I know you have.
Male: No.
WILLIAMS: And what generally has been your experience?
Female: Food brings people together.
Male: You're always going to be curious who you're going to meet.
WILLIAMS: Every dinner is different. Here in New York it's a real melting pot.
Female: You eat, you can talk -- yes, it's intimate.
IDO MIZRAHY, FILMMAKER: Whenever you travel, you're always looking for this authentic experience that's like truly local, that's not for the
tourists.
WILLIAMS: Slowly across the evening, everything in the room begins to change.
SARAFINA DICELIFE: Wei, (ph) you got married, hyphenated your name to be (inaudible).
Female. (LAUGHTER). Yes.
WILLIAMS: Phone numbers are exchanged and those who were once strangers are now something completely different.
And you might arrive alone but after a couple of hours here, you leave with eight new friends. Cheers.
GROUP: Cheers.
NAIDOO: Yes, thank you for coming.
LAKE: Now Disney is accused of gouging visitors to the happiest place on earth. The European Commission says it's investigating consumer complaints
that Disneyland Paris has been overcharging its customers based on where they live.
Brussels pointed out that in some cases customers from France will be charged hundreds of dollars less than U.K. visitors while Germans will be
forced to pay at least $1,000 more than their French neighbors.
In a statement Disney defended its pricing claiming that it's based on peaking demand around different national holidays. Earlier I asked the
European commissioner for industry whether she believed the claims were justified.
(BEGIN VIDEOCLIP)
ELZBIETA BIENKOWSKA, EUROPEAN COMMISSIONER FOR INDUSTRY AND ENTREPRENEURSHIP: We are analyzing this. And for now what we see is that
using the different I.P.s and using different credit card, you got different price.
And this is what we saw so far. So of course if explanation will be right, justified and such that will really convince us that this is not because of
the place of residence, of course this will be the first and the last step. But we have to have this answer, not from the company but from the French
authorities because this is a law that has to be applied in every member state.
LAKE: And obviously the Commission's goal is to provide consumers with the most information so they can make an educated decision. You mentioned that
there -- this is the first of many more that we may see coming from the service sector.
Are you concerned that this is going to send off a message that the E.U. is hostile to business?
BIENKOWSKA: Oh definitely not. We are very much friendly to business and want business to develop throughout Europe. And that's why we know and I
think and I want every European government and every -- and each -- European citizens to know that one of our biggest value is single market --
single market without borders, without hurting anybody because without putting any different prices for the people they live in this, in this or
this member state.
We are the market of the 500 million inhabitants -- 500 million consumers. And our -- again I repeat -- our one of the biggest value is this market
without borders. In such cases like this one, because for us it's normal pace (ph). Of course it's very much visible but that's why I said we'll
have other ones.
We want to -- we only want to show that for us this is truly a very much important issues -- issue -- and that we'll be very much very strong in
executing the law.
If you want to have single European economy -- economic -- area, we have to fight with such practices.
(END VIDEOCLIP)
LAKE: Social media responds to the death of Cecil the lion. There are calls for revenge, prosecution and restraint. Next.
(COMMERCIAL BREAK)
[16:51:16] LAKE: There is growing outcry over the trophy-hunting death of Cecil the Lion. Earlier this month Cecil was lured from a protected
national park in Zimbabwe and illegally shot by a Minnesota dentist. As we told you earlier, two men accused in the death of the famed lion have been
released on bail by a court in Zimbabwe.
In an emotional monologue, Late Night TV host Jimmy Kimmel urged people to support those who tried to protect Cecil instead of vilifying the hunters.
(BEGIN VIDEOCLIP)
JIMMY KIMMEL, HOST, "JIMMY KIMMEL LIVE" SHOW: I think it's important to have something good come out this disgusting tragedy. So this is the
website for the Wildlife Conservation Research Unit at Oxford -- wildcru.org.
These are the researchers who put the collar on Cecil in the first place. They tracked the animals and studied them. If you want to do something --
if you want to make this into a positive, you can -- sorry -- OK, OK. Make a donation to support them.
(END VIDEOCLIP)
LAKE: David MacDonald heads the research unit that was tracking Cecil. He is the director of Wildlife Conservation Research at the University of
Oxford where he joins me now via Skype.
Thanks so much for being with us, David. And clearly you're getting some much-needed support as a result of this. But, you know, talk to me about
this debate over hunting. When you hear this and they say `I didn't know, I didn't realize it was illegal,' do you believe them?
DAVID MACDONALD, DIRECTOR, WILDLIFE CONSERVATION RESEARCH, OXFORD UNIVERSITY: Well I think, Maggie, the backcloth for this story is that
lions in Africa are in big trouble.
Perhaps there's 30,000 of them left in the whole continent. They face all sorts of problems and our work is to try and understand the threats they
face so we can construct the very best policies to protect them.
Now regarding the death of Cecil, for us it's a personal tragedy. We've followed this lion since 2008. Once an hour satellites are monitoring his
movements everywhere he went. We built up a remarkable story of his lifestyle and learned a lot from it.
When he left the park, after a while his transmitter stopped moving. We knew something had gone wrong.
Actually the marvelous Zimbabwean National Parks Authority has been on the case assiduously since then and we've been working with them. It seems
self-evident that this was an illegal killing and the Zimbabwean authorities are doing their best to bring the person to book.
But I would join with Jimmy Kimmel whose broadcast seemed just fantastic to me to say can we draw some good out of this.
LAKE: And conservation in itself -- the economics are difficult. Not only is it expensive for the research that needs to be done but a lot of people
are saying if you don't change the underlying economics, if you don't address the poverty, you're going to continue to have these large bounties
that are paid for these type of killings.
MACDONALD: Yes, Maggie you're so right. This is not just a matter of biology. It's a matter of understanding that biology, the ecology of the
animals but also the lifestyle and the economics of the situation in which local people live -- because they're living alongside these lions. We work
a lot not only on trophy hunting but also on the predation of the lions on local livestock.
And we work with local people to try and find ways of conserving not only the lions but advantaging the local people. But as you say, this is
difficult work, it's expensive work, it's under challenging conditions.
So when Jimmy Kimmel suggests that a tiny bit of good to come from all this could be support for our work which rests entirely on philanthropy, I think
he did a wonderful thing.
And I think the response of millions of people around the world to this story shows how people in all walks of life value wildlife and in
particular in this case value the iconic African lion which really needs help.
[16:55:13] So, I would like to follow Jimmy and say, yes, let's try and learn from this -- not only about the biology. We're studying the
aftermath of Cecil's death amongst the surviving lions which we track from day to day.
But also let's try and support this work -- training local Zimbabweans as we do to be conservation professionals, securing more satellite collars to
track more lions. These are all things we can do if, as Jimmy Kimmel suggested, people support us.
And he gave the website address. I hope you'll allow me to do so again -- wildcru.org.
LAKE: Absolutely. And that would be fitting legacy for Cecil indeed. David, thank you so much for joining us this evening.
MACDONALD: Thank you.
LAKE: We will right back with more QUEST MEANS BUSINESS in just a moment.
(COMMERCIAL BREAK)
LAKE: We are keeping an eye on Facebook stock as its earnings conference call is due to start. Shares fell sharply (AUDIO GAP) were announced.
They have since recovered slightly and are now down about 2 percent. The company's earnings and revenue both beat analysts' expectations but
expenses jumped.
U.S. stocks ended the day in positive territory though. The Dow closed up 121 points. It was a similar story in Europe -- a bumper crop of earnings
saw most markets there end in positive territory. Britain's FTSE was among the top gainers boosted by strong numbers from Barclays Bank and an
outstanding session from French automaker Peugeot. Citron helped the CAC 40 filled (ph) on Tuesday's gains.
And that's QUEST MEANS BUSINESS. I'm Maggie Lake. Thanks so much for watching. The news continues here on CNN.
END
