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Dow Loses Over 270 Points After US Jobs Report; European Stocks Lower on Rate Hike Fears; Breaking News: Hungarian Government to Send Buses to Migrants on Highway; Egyptian Billionaire Says He'll Buy Island for Refugees. Aired 4-5p ET.
Aired September 04, 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)
PAULA NEWTON, HOST: Ah, relief! That closing bell marks the sound of a three-day weekend for traders on Wall Street, but it is not going to be a
happy holiday. It's Friday, September the 4th.
Tonight, August jobs numbers are just not working for the markets. A September rate rise may now be back on the table.
A slow march to a new life. Thousands of migrants head for Austria on foot.
And I'll speak to the billionaire who says he can buy a whole new island to house those refugees.
I'm Paula Newton, and this is QUEST MEANS BUSINESS.
Tonight, fear and uncertainty tighten their grip on Wall Street. Breaking news right now -- well, you can look at it there. The Dow has
closed down 273 points. I know it looks bad, but it was a lot worse. It has now minted a third triple-digit loss this week alone.
Now, it's a very mixed bag with that jobs report in the United States that is keeping investors very much on edge. Jobs data is, of course,
bellwether for the American economy and may have now reopened the door for the Federal Reserve to raise interest rates this month.
These new August figures show the smallest number of jobs added in six months. Still, there are underlying signs that the US economy may be
healthy enough to handle the first rate hike since the 2008 financial crisis.
Now, all eyes, of course, now are on Janet Yellen and, of course, the Federal Reserve. Now, the Fed has been waiting for certain lights, shall
we say, in this report to turn green. Now, look at the job growth.
(ENGINE REVVING SOUND EFFECT)
NEWTON: Green light, of course, 173,000 jobs were added last month. It's a headline number that actually missed expectations, but upward
revisions mean we're still averaging about 200,000 jobs a month, and it could even be better than that. That is a positive sign for the Fed. Now,
looking at the unemployment rate --
(ENGINE REVVING SOUND EFFECT)
NEWTON: -- what do you know, another green light. Unemployment has now fallen to 5.1 percent. Make no mistake, that is the lowest in seven
years. Finally, to wage growth, and this has been key. A lot of people --
(CAR HORN HONKING)
NEWTON: -- keeping an eye on this. Wages get that yellow light. They grew just 2.2 percent, but it's an encouraging figure. But is it
enough, really, for the Fed? The Fed had targeted 3.5 percent wage growth as the ideal.
As you can see, there is now screaming red lights from this report, and that would force the Fed to slam the brakes on a rate hike. Joining me
now is Diane Swonk. She is the chief economist at Mesirow Financial. Oh, I'm happy you're here to hold our hand --
(LAUGHTER)
NEWTON: -- through this one, I have to tell you. Such a mystery. Before we get to the actual jobs numbers, when you look at what the Fed is
doing, a lot of talk later this afternoon when we saw that slide --
DIANE SWONK, CHIEF FINANCIAL ADVISOR, MESIROW FINANCIAL: Yes.
NEWTON: -- that if they just did something that it would give some certainty to the markets.
SWONK: Well, this is one of the downsides. The Fed has decided to make their decision meeting by meeting, which has left us a few weeks away
from what is considered an historic move, the first rate hike in nearly a decade, and nobody knows which way still -- people are still betting which
way is it going to go? We don't know for sure which way it's going to go.
And by feeding into uncertainty into an uncertain market -- we don't know what's going on China all the way, we don't know how much global
growth and slowdown in emerging markets will spill over to the United States, we've got Canada just north of us in a recession. What does this
all mean for us? What does it mean for inflation going forward?
The Fed is struggling with these issues. And the divide within the Fed is as large as the divide outside. It's almost just like Moses has
opened the wave --
(LAUGHTER)
SWONK: -- the ocean here. But it's interesting, because we're going to have such a heated debate on what's still a pretty tepid economy
overall.
NEWTON: And like you said, no consensus, really, on what the Fed will do or should do. Getting back to these jobs numbers, what did you see in
the report which we may not have seen in the headlines?
SWONK: First of all, the headline -- we expected to see a number like this because this is a month that's notoriously short on the jobs data. We
also know the Bureau of Labor Statistics tells us that they cut off the survey on August 31st instead of September 1st for -- the establishment
survey, that seems something sort of technical and who should care?
Well, compliance dropped dramatically, and so, the number of people who answered the survey fell, which means we may have missed a whole
portion of jobs that could make this revision even larger, particularly for the private sector, which really fell short. There was only 140,000
private sector jobs.
And this is completely contrary to what had happened earlier in the year. The government had gotten better on their ability to gather data and
smaller revisions. This month I think is gong to be an even bigger upward revision.
And that's good news in terms of the underlying economy. The problem is, it's good enough for many on the Fed. It's not good enough for many in
the overall economy.
NEWTON: Yes, and as you say, revised up July, revised up in June. July was actually quite significant. I've been asking this question to
several people today: what do you see is the biggest threat to this US economy right now, which really has been shouldering the burden throughout
the world, really?
[16:05:07] SWONK: Well, that's the issue is that they're -- the rest of the world is looking to us to play Atlas, and the question is, are we
strong enough to be Atlas? I think we do have a resilience, but the threat is that instability abroad comes back. There's no Las Vegas in the global
economy. What goes there doesn't stay there. It all comes back.
(LAUGHTER)
SWONK: It's all public, and now it all comes back and affects us. And the bottom line is, even this financial market turbulence can affect
people's 401(k)s, it can affect how they fell about the US economy.
The good news is, we had a tailwind coming into it, that the housing market was finally healing, people are restoring the equity in their homes.
We're getting more jobs. We still aren't getting enough high-quality really wage-accelerating jobs, but we're getting close.
And I do think that there's more room to improve in the labor market. That doesn't mean the Fed shouldn't necessarily raise rates. I think the
issue for the Fed -- when we look back on history, September, December, even March, that's not going to matter.
What's going to matter to the American economy is now when the Fed's first rate liftoff was, but how fast do they raise rates? And there's
nothing in this economy -- they're not going to take away the punch from the party quickly. They're just slowly easing up on the gas a bit, and I
think that's the way to look at it.
NEWTON: And with all of that talk about what can central bankers do, I'm sure the Fed is looking to see, look, we're going to remain effective.
We know what we're doing here. We will try and steady the numbers --
(CROSSTALK)
SWONK: We will try to remain effective and maintain their credibility. But with this much uncertainty, it really is hard. I think
when you don't know what they're going to do a few weeks out from what could be an historic move, that might be a vulnerability.
NEWTON: OK. Thank you so much for staying with us on what is a very empty New York City, it feels like right now.
(LAUGHTER)
NEWTON: I appreciate it, Diane. So nice to have you in the studio.
SWONK: Great to be here, thank you.
NEWTON: Thanks so much. Now, we have seen triple-digit swings on the Dow in four out of the last five trading sessions this week, and we ended
this week down more than 3 percent. Tim Anderson is the managing director at TJM Investments and joins us now from the New York Stock Exchange.
I'm interested to get your interpretation of what a lot of quants people have said is, look, a lot of selling to still be done in those
markets. Now, the fundamentals still look good, but what about that market? Do you still think it will be reaching for a new bottom going into
the rest of September?
TIM ANDERSON, MANAGING DIRECTOR, TJM INVESTMENTS: It certainly feels that way. And you heard Diane mention uncertainty at least two or three
times. And that's really a big factor for our market right now.
Now, we had a -- some very sharp moves this week, as you mentioned. The S&P 500 moved in a 25 handle range for the last four days. And
volatility has been a constant since we broke very hard below the 200-day moving averages two weeks ago.
NEWTON: When you look at this market, though -- and some people have pointed out they're looking at global assets around the world and saying,
look, when you look at the bond market, when you look at where interest rates are, there is nowhere for investors to go.
We've got so many people with cash on the sidelines. Do you think we can get through this after the Fed meeting and really get to see some
strength throughout the rest of the year?
ANDERSON: Well, in addition go the Fed meeting, third quarter earnings will be a big deal for the markets starting in about five weeks.
Keep in mind, we had a pretty mediocre at best second quarter earnings reporting period.
And I think it's -- investors are starting to question how the market will react if we get a second consecutive mediocre quarter of earnings
report coming up starting in the first or second week of October.
NEWTON: Tim, I think it's fair to ask you on a Friday afternoon, the last one of summer, people going into a long weekend here, does the mood
feel scary to you? Or are people kind of just rolling with the volatility?
ANDERSON: I think people are rolling -- people are definitely rolling with the volatility for -- certainly people on the floor of the Exchange,
the increased volume that's come with that volatility is good. Volume has been one thing that the market has seriously been lacking in the last
couple of years.
And we've had some -- a number of very sharp sell-offs in the last three weeks, but we've also had a few very sharp rallies immediately
following that. So, there's obviously some transitioning going on within the market, and the market just has to find another equilibrium level to go
forward from.
NEWTON: Yes, and Tim, we all know that a lot of people love that volatility because that is the way they make some money. Tim, have a great
weekend. Appreciate you sorting that out with us.
ANDERSON: You, too.
NEWTON: Now, European investors certainly got the impression the jobs report would be enough for the Fed to raise rates. Fueled on that fear,
stocks on the FTSE in London fell nearly 2.5 percent. Frankfurt's DAX and the Paris CAC 40 were even worse.
[16:10:10] Earlier, I spoke to Jason Furman, the chairman of President Obama's Council of Economic Advisors. I asked him what he'll
tell the administration about this jobs report.
(BEGIN VIDEOTAPE)
JASON FURMAN, CHAIRMAN, WHITE HOUSE COUNCIL OF ECONOMIC ADVISORS: I'm going to tell the administration that this is very much a continuation of
the trends that we've seen in the economy. We're continuing to add jobs month after month.
In the last three years, we've added 8 million of them. That pace has not been exceeded since 2000. The unemployment rate is continuing to come
down. So, overall, I have roughly the same economic outlook today that I would have had last week.
NEWTON: The loss in manufacturing jobs clearly a sore point. What do you think can be done to try and revive that sector?
FURMAN: I think manufacturing is facing a challenge from a slowdown in the global economy, which reduces America's ability to export.
And that's why part of the solution that issue lies in engaging with countries around the world, particularly with China, to make sure that
they're taking the reforms that they need to make, doing it in a transparent way, to strengthen their economy and take the role that they
should have, which is an engine of growth for themselves and for the global economy.
NEWTON: And directly related to those manufacturing jobs, the US dollar continues to climb. How much does it worry you in terms of it
having an impact very -- quite directly, and a detrimental impact on some of those job creation sectors?
FURMAN: No, I'll leave comments on the dollar to the Treasury secretary. But in general, when it comes to anything international, the
answer is the same, which is if countries around the world are playing by the rules, if they are taking the right steps they need to to generate
growth, then that's going to work out well for our exporters and our economy.
So, when you look at China, that includes steps like holding them accountable on issues like the exchange rate, where they've made
commitments around transparency, making sure that they're not using exports as a quick way out of their economic problems, because it's not a
sustainable way out. The way out for a country like China is greater domestic demand, expanded consumption.
NEWTON: I know you don't want to talk about the dollar or the market volatility, but if you just talk about manufacturers, if you're talking
about the auto sector, any kind of manufacturing sector, you're looking at that dollar thinking, that's got to drag jobs out of the United States.
FURMAN: No, the big issue is how strong is growth in the United States? How strong is growth in the rest of the world? And if you know
that, that's going to tell you a lot about what's going to be going on with our exports, what's going to be going on with our real economy, and even
what's going to be going on in financial markets and the dollar.
So, that's why a lot of what we're trying to do is ask what we can do to strengthen the United States, what we can do to work with partners
around the world to make sure they're taking the steps to strengthen their economies as well.
(END VIDEOTAPE)
NEWTON: OK. Up next, we'll have a live report from Hungary. You won't want to miss this. Thousands of migrants have taken to the highway
to walk to the Austrian border.
(COMMERCIAL BREAK)
[16:14:59] NEWTON: We want to bring you some breaking news now. The Hungarian government says it will send buses to transport migrants to the
Austrian border. Why is this significant? More than 1,000 desperate men, women, and children have set out on foot towards the border with Austria.
They took to the Hungarian highway after being stranded after a Budapest train station for days.
Now, this is the E-60 Highway connecting Budapest and Vienna. Arwa Damon is there for us now, live, as you can see. And Arwa, for people who
have not seen your extraordinary reporting throughout the day, fill us in. What was the day like? We know it was incredibly dramatic from start to
finish.
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It really was, Paula. And this is the main highway that connects Budapest to Vienna, and
these people, most of them refugees of the wars in Syria and Iraq, have been walking for the last eight to nine hours. And this is where they are
bedding down for the night, on the side of this main thoroughfare.
It has been so difficult for them. They decided to walk, Paula, because they couldn't take it anymore. They couldn't take waiting at the
train station, watching their children sleeping on the streets, not being able to bathe properly, feeling humiliated, degraded, unable to wait any
longer for the powers that be to make the kinds of decisions that are necessary, for leaders to figure out how they're going to be handling this
crisis.
And so, they decided to walk. And when they walked, they received a reception that is so starkly different to the attitude of the Hungarian
government that has been very hostile, people helping them out along the way.
Take a look at all of these baby strollers. These were all handed out to them by various different individuals who just stopped on the roads,
having seen pictures of the parents carrying their little children on their shoulders, cradling them in their arms, and strollers were just being
handed out. People that had them in their homes, grabbing them, some going out and buying new ones.
Also being handed out is food and water, all by groups of volunteers, friends that just got together, raised a bunch of money and went out and
bought what they thought would be most important.
One of the people here also handing out those plastic rain coats because it might rain, which as you can imagine, will just make living like
this so incredibly difficult.
The Hungarian authorities have been trying to urge these people to go into the camps here, but none of them want to do that because they have
already been through one of the camps that is close to the Serbian- Hungarian border, and they say that the treatment there was inhumane. They say that they were made to feel like they were animals.
And you can see more of these volunteers now, coming through, handing out more things. Baby diapers for the little ones, wet wipes. Some people
who don't need them passing it on, knowing that there's others further down the line that do need more.
But as I was saying, Paula, this is in such stark contrast to the sort of attitude that they have been receiving from the Hungarian government,
from the police force. Back to the issue why they don't want to go into the camps, it is because of the treatment. Many of them, when you just say
"camp" to them are absolutely terrified of that prospect, which is why they choose to walk instead.
People are exhausted. They are emotionally, physically drained. Parents so hard for them to see their kids like this, but making the
decision to walk for as long as it is going to talk for them to reach their final destination, because they can no longer keep living in limbo.
They just want to keep going. They just want to start that new life that they can only hope awaits them further in Western Europe, Paula.
NEWTON: Yes. Now, Arwa, completely contradicting what they've been saying for days, the Hungarian government is now saying they will send
buses to that highway to pick these people up and bring them to Austria.
Arwa, can you ask some of the people there -- and I know you'll have to translate for us -- if they're going to trust the Hungarian government?
Will they trust them enough to get on those buses and trust that they will take them where they want to go and won't take them to --
DAMON: Sure.
NEWTON: -- refugee camps?
(DAMON SPEAKING ARABIC)
(CROWDS RESPONDING IN ARABIC)
DAMON: Just -- from this group, Paula, they're saying no, they won't get on the buses. They're lying.
(DAMON SPEAKING ARABIC)
(CROWDS RESPONDING IN ARABIC)
[16:19:59] DAMON: They don't believe that they'll take them to the border. They think that the Hungarian government will take them to these
camps. That's again just this small group's perspective. But it also shows the lack of severe trust that exists between this population and the
Hungarian government. They don't trust them.
So, we're going to have to wait and see, again, what happens, because the kids are really, really, really tired, so maybe some of the parents
will end up taking that chance. But as you can see, at least from that group, a very immediate, adamant "no, we will not go into their buses, we
do not trust them."
NEWTON: Yes, I mean, at this point, Arwa, from the outpouring you're seeing just from regular, average citizens in Hungary, maybe some of them
will start to drive them up the highway. I'm still -- I'm so struck by all the images you've shown us every single, solitary hour, and I -- everyone
should be tuning into this, because it really is history in the making.
Arwa, do you really think that perhaps they will get to the goal, their goal that they want to get to Germany, that's where they want to go,
most of them? Do you feel that they have that sense of hope, that they will get there now?
DAMON: They do. And I think that even though this walk has been very tiring for them, it's also been a bit motivating because they have finally
taken matters back into their own hands. They are the ones taking action, they are the ones that are moving forward, they're not really waiting for
the Hungarian authorities.
They're not really waiting for the Germans to somehow produce a miracle, which is what they were all believing would eventually happen,
because their logic was if Germany sees them like this, or if Germany has seen them languishing in the train station, surely they would have done
something.
So, there's also a sense of, you know what? We're not going to be living in the streets anymore, we're not going to wait for Europe to come
save us. Yes, we do believe that we can build a future for our families there, but we are going to take it into our own hands.
These are very determined people, Paula. These are also people, remember, they've done this before. After they arrived in Greece after
taking these boats from Turkey, they walked in Greece. They walked in Macedonia, in Serbia.
They walked for hours a day, sometimes some days up to ten hours. They've slept in the streets before. They've slept in the woods, in the
forest before when they were hiding out from the authorities. So, they're very used to the hardship of the road.
And a lot of young men in these groups making this journey because they want to bring their families. A lot of kids, too.
And viewers have been asking, people have been asking why it is that families will bring their children on this kind of a journey and that why
would they risk their children's lives? Well, it's because anytime you ask that of a parent, they will say, well, if we stayed back home, be it Syria
or Iraq, our kids would have probably ended up dead anyway. So, why not take a chance at giving them a future?
Because back in these people's homelands, those basic opportunities of building a life for yourself, a life of dignity, of getting an education,
of seeing your children thrive and grow the way parents truly and desperately want to for their kids, this doesn't exist for them back home.
So, going through this is all really to try to build that future.
NEWTON: Yes, and it was also their past. A lot of these people remember a time when their kids would be going back to school, they had
safe and happy homes. Arwa, I have to ask you, do they know -- do they realize that the eyes of the world are on them right now, that the
squabbling between politicians does continue, but that people are focusing on this issue right now?
DAMON: They do and they don't. They know that the world's media is here, and they do feel reassured by our presence because they feel as if
maybe it permits to a certain degree, perhaps from, as they say, excessive use of force by the Hungarian police.
Or on this walk, a lot of them seeing the various different media outlets saying, please stick with us, please stick with us. If you leave,
they're going to try to stop us, they're going to try to round us up.
But they also come to us and ask questions that we can't answer. Questions like, why is Hungary doing this to us? Why if Germany says it
will receive us is not coming to send buses, to send trains? Why is Europe treating us like this? Don't they know how much we've been through back
home? Don't they know that if we had a choice we would want to stay in our homelands?
And they also -- they've been going through this for days now, some of them upwards of a week, this living in the streets, being stuck in Hungary.
And so, some of them feel even though, yes, reassured by the media's presence, they know the world is watching them, they also realize that
we're a little bit helpless in all of this.
[16:25:03] NEWTON: Yes, definitely helpless. Arwa, want to thank you. You have been with them on this journey every step of the way, not
just for the last few days, but for the last few years. We will continue to watch your reports by the hour. Our Arwa Damon there in Hungary.
Now, an Egyptian billionaire has offered up his own solution to the refugee crisis as European leaders struggle to come up with a plan. Now,
the chief executive of Orascom TMT says he would buy a Mediterranean island where migrants and refugees could build a new country.
Now, Naguib Sawiris joins us now on the phone from El Gouna in Egypt. Thank you so much for joining us. We just had that very dramatic report on
the side of a highway in Hungary. Some people would say to you, look, we know your heart is in the right place, but this is a ridiculous idea, it
will never work.
NAGUIB SAWIRIS, CEO, ORASCOM TMT (via telephone): It's not a ridiculous idea, and I'm not known to adapt to ridiculous ideas. It's a
very simple idea. Greece is suffering from a lot of financial problems, they have dozens of deserted islands. Italy has the problem, too. They
have islands that are not inhabited.
And already these Syrian refugees are in Greece and are in Italy. So, it's a very simple solution. They sell the island to me. I'll make a
temporary shelter for these people. I'll make a small port and a marina for the boats to land there.
I'll employ the people to build their own places, their own houses, school, a hospital, a university. I'll build a hotel for them to -- I'll
give them jobs and shelter until their countries come back to reason. Then, once this is done, they can have the choice whether to go back to
their country or to stay on this island.
The problem is in the politicians. Some people think that the rich people don't have a heart, and I sometimes think that politicians don't
have a heart, you know? What I need is simple. I'm going to pay for whatever I'm saying.
If they have these islands that can take 100,000 or 200,000 people, all I need is the permission to put these people on this island. After
that, I don't need anything anymore from them. I'll pay them for the island, I'll provide the jobs, I'll take care of all the logistics, and I
know I can do that, so --
NEWTON: But --
SAWIRIS: -- it's a simple thing. It's not a dream, it's not magical. And they're already stuck with the problem. They already have the people
there, so what are these? And Greece has islands on its agenda they should have privatized a long time ago.
I need your help as media to provide the contact with the prime minister of Italy, prime minister of Greece, to just give me the island and
I'll do the rest.
NEWTON: And as much as people want to take you up on what you're putting out, really, as a utopia for these people, two things is: how much
money do you think it will take? And why do you think that these refugees want to go to an island on their own in the middle of the Mediterranean?
SAWIRIS: First of all, I'm -- excuse me, for the word -- but money is not the problem for me. There are no limits to my charitable endeavor,
because I'm not going to take this money with me to my grave. I've raised my kids well, they're well-educated, and I don't think they need this kind
of money. And if I do something good, it's more better for my kids and their name later on than the money itself.
Secondly, second question was that why would they -- what was the second question?
NEWTON: Why do they want to go to an island in the middle of the Mediterranean? If we go to those --
(CROSSTALK)
SAWIRIS: Because they will be --
NEWTON: Go ahead.
SAWIRIS: Because they will get a shelter (inaudible) which they can live. They can send to their kids to a school, which we'll build. If they
get sick, they'll find a hospital, and they're all going to be paid and have a future and have a job.
And then, if they don't like it there, once their things cool down in their countries, they have always the freedom to go back to their country.
NEWTON: Now, you're basically -- what you're lining up is really to have a protectorate in the middle of the Mediterranean. Have you had any
glimmer of hope from Greece or Italy that they're going to take you seriously on this?
SAWIRIS: That's why I'm talking to you right now --
(LAUGHTER)
SAWIRIS: -- I'm not looking for fame. I'm talking to you guys because you guys can influence politicians. Here is my message to Prime
Minister Renzi, and he knows me personally, and to the prime minister of Greece: give me the island, I'll do the rest. Give me the permission to
put these people there, I'll do the rest. I'll never ask you for anything else.
If you're worried that they'll go there and wander into other countries, give us a patrol, we will put them there and I'll make sure that
they're so happy they will never want to --
NEWTON: Sir, I admire your audacity, and we will continue to follow your efforts to get there. Really appreciate your time.
SAWIRIS: Thank you very much.
NEWTON: Now, we just want to recap our breaking news for those just joining us. The Hungarian government, going against everything it said
before, says it will now send buses to transport migrants to the Austrian border, not to relocation camps or refugee camps.
More than 1,000 desperate men women, and children have set out on foot towards the border with Austria. They took to the Hungarian highway after
being stranded at a Budapest train station for days.
[16:30:08] Now, a few moments ago, we heard from our correspondent Arwa Damon, who's been on the highway with them, who'd been at the train
station with them. Migrants there told her that they would find it difficult to trust the Hungarian government enough to board those buses and
actually trust that it would be taking them to the border.
However, she, of course, says that, of course, when you have mothers and fathers who are looking at their exhausted children that they have been
carrying now for days, that they may at the end of the day be willing to get on those buses to go to the Austrian border and put their trust once
again in those Hungarian authorities.
And we will have much more on this story in the hours ahead. This is CNN.
(COMMERCIAL BREAK)
NEWTON: Hello, I'm Paula Newton. Coming up on the next half hour of "Quest Means Business" - U.S. President Barack Obama meets with the Saudi
king at the White House and I'll be speaking to a member of the King's delegation.
And these are the toys you're looking for. Well we'll show you what happens when hundreds of Star Wars geeks get their hands on new memorabilia
for the first time. But first, these are the top news headlines we're following this hour.
Hungary says it will send up to 100 buses to help transport thousands of migrants who are trying to reach Austria by foot. A government
spokesperson says the crowds present safety and security concerns. The migrants took to the highway after they were not allowed leave via train.
A few moments ago we heard from our correspondent Arwa Damon who is on the highway with them. Migrants there told her that they would find it
difficult to trust the Hungarian government enough to board those buses.
However, she said many mothers and fathers who are exhausted from having carried their children for miles now may be more willing to take
those buses to the Austrian border.
Hungary's prime minister meantime met with his counterparts from Poland, Slovakia, and the Czech Republic to try and address the ongoing
crisis. Now in a statement they have said quotas forcing countries to take on more migrants would be unacceptable.
Slovakia's prime minister said distinctions had to be made between kinds of migrations.
(BEGIN VIDEOCLIP)
ROBERT FICO, SLOVAKIAN PRIME MINISTER, VIA INTERPRETER: Let me stress that it is a show of solidarity towards those who really need it. We would
like to radically (ph) distinguish between economic immigrants and other immigrants who need their life to be protected, their health to be
protected.
(END VIDEOCLIP)
NEWTON: In Yemen meantime, 22 soldiers from the United Arab Emirates and 26 Yemeni coalition forces were killed in a missile attack on a weapons
depot.
[16:35:07] It happened in the northern part of the country. Two senior defense ministry officials say Houthi rebels are to blame. More
than 70 other soldiers were wounded.
Four men pleaded guilty today to a spectacular heist in London's Hatton Garden Jewelry District. The break ins happened over Easter
weekend.
By some estimates the men got away with more than $300 million worth of jewelry and cash from safe deposit boxes. Three other suspects will be
tried in November.
Now as investors around the world play close attention to the number of jobs the U.S. economy is creating. Europe has a very different jobs
challenge - finding work for the thousands of migrants and refugees seeking safe harbor. Atika Shubert reports on the path of one refugee.
(BEGIN VIDEOCLIP)
ATIKA SHUBERT, CNN CORRESPONDENT: Assad Baloch remembers the exact date he first stepped foot in Germany - May 24, 2013 fleeing persecution in
Balochistan Province of Southwest Pakistan.
Back home, he studied politics, campaigned for human rights. Today, he's learning how to make a lock. It's not, he admits, what he had hoped.
ASSAD BALOCH, REFUGEE: It's not so much good but I have to do it because nothing is better than something.
SHUBERT: It's a bit loud in here because racket (ph) is in a metal workshop where the training is taking place. And this is what they are
building today - the kinds of locks that you can use here. And it's not just this kind of training, the training happens in all kinds of
industries.
Everything from baking to housing construction. And the ultimate goal is to get refugees into jobs.
This program was initiated by Berlin companies in need of workers - electricians, plumbers, construction workers. Their motto --"Refugee is
Not a Career."
The hope is not only to match refugees with jobs but to guide them through the maze of German bureaucracy. A typical apprenticeship here can
take three years or more. This program hopes to create a shortcut and introduce refugees to Germany's working culture.
Male: For example, they have to come here like every day for eight hours and they have to be here at 8:00 and in some countries it's
different. You go there for - you work for two, three days like for 20 hours then you have three weeks off.
SHUBERT: There are up to 100 refugees enrolled so far and dozens have been placed into jobs. But it's a drop in the bucket to the thousands
arriving in Germany. The biggest impediment is language, the other is matching skills and being willing to learn new trades.
Male: So the cities have the problems because they are confronted with all the people and they want to give them an opportunity. They know
that they have to integrate them because otherwise they will get like a serious problem.
SHUBERT: Assad says he hasn't found a good fit yet but says the program is still good. His advice to other refugees?
BALOCH: The men must learn this language. Sure it difficult and then they have to look up our house building (ph) or restory) if anyone wants to
us to be and in order to do something like this. But don't sit in home. You'll not get nothing.
SHUBERT: Next week, Assad will trade in his hammer for baking. That's just part of the project rotation, a new skill he hopes may lead to a new
job. Atika Shubert, CNN Berlin.
(END VIDEOCLIP)
NEWTON: Now still ahead on "Quest Means Business," the focus on the Middle East for President Obama as he hosts the Saudi king in Washington.
(COMMERCIAL BREAK)
[16:41:04] NEWTON: The fight against ISIS and the wars in Syria and Yemen were high on the agenda as U.S. President Barack Obama met King
Salman of Saudi Arabia. Now the pair who have been holding discussions in Washington have pledged to strengthen ties between the two countries.
They've also been looking at falling oil prices and the recent Iranian nuclear deal which has been a cause of concern for Saudi Arabia. We want
to get more on this with John Sfakianakis. He's director of the Gulf Region at Ashmore Group and he joins us now from Washington.
Sir, you know it was a big mouthful just to say all the topics that were up for discussion here. At the same time, we have had a big really
change of power in Saudi Arabia, so it is a watershed moment in that country.
In terms of what is on the table now, certainly the rhetoric says that the relationship will be strengthened.
But what are the points of tension right now on the table that will be difficult going forward?
JOHN SFAKIANAKIS, DIRECTOR OF GULF REGION, ASHMORE GROUP: Well absolutely. Again, the U.S. and Saudi Arabia are deep historic partners.
But of course there are disagreements. And it happens to the best of us that we have issues and that why King Salman is here.
Actually King Salman's visit is the first visit since he took the - he took the - throne of Saudi Arabia and that is quite important (AUDIO GAP)
historic.
NEWTON: It's quite historic but will it be productive? And I think a lot of people are looking at the differences. The Middle East becomes ever
more complicated literally by the minute. I mean, some people have questioned why the United States even continues to have Saudi Arabia as
such a close ally that maybe they should defy the (Moor) and it would make the world a better place.
SFAKIANAKIS: Naturally not. I think that Saudi Arabia has proven to be a very important ally. What Saudis want to understand is to what extent
is the U.S. willing to be an equal partner. And there are many issues that have to be dealt with.
First of all the issue of Yemen, the issue of Iran and its proxy involvement in all these civil wars. The role of Iran in Yemen, the role
of Iran in Syria, Lebanon. That's very important.
And then the question of how to deal with ISIS. That is very important. Remember that for Saudi Arabia, the United States has been
selling a lot of its goods. It's the largest arms partner when it comes to exporting arms around the world - Saudi Arabia, that is.
So there are many issues of both geopolitical and economic importance.
NEWTON: I want to hit on an issue here where it has to do with ISIS. Many people are thinking that perhaps Saudi Arabia can play a very
productive role, not just in trying to defeat ISIS which is a common goal, but trying to come some kind of peace agreement, compromise something in
Syria.
What do you know that you can tell us that perhaps has changed with the new regime in Saudi Arabia that will allow them to come to some kind of
point of accommodation in Syria, so they can finally deal with all the problems on the ground there?
SFAKIANAKIS: Clearly for Saudi Arabia, there is no other issue except the departure of Bashar al-Assad. So that has to be dealt with. There is
no other compromise.
But also the United States has to decide whether they want to be decisive partners in the Middle East and their involvement has to be clear
and widely understood and we'll always get these messages that the United States wants to be partly involved in the Middle East.
So if we want to be allies, we need to be equally involved in sharing our burden.
NEWTON: OK, and that's a very astute point. I want to come back to what you said though - decisive. What do you want to see the United States
do that will convince you they're more decisive?
SFAKIANAKIS: Well over the last few years, the United States has proven to be quite uncertain as to what to do in the Middle East.
First of all, it has to be clear that when you sign an agreement with Iran, whenever it violates, and if it violates all these nuclear deals, the
United States will be decisive in taking action and measures to mitigate for any continuous violations.
[16:45:07] So the United States is the only superpower that is willing to do this. It has to show that it is also capable.
NEWTON: I want - I can't let you leave without asking another question. We've just had all this dramatic reporting from Hungary today,
we've continued for years at CNN to cover the plight of those Syrian refugees. Some people critical of Saudi Arabia, the United Arab Emirates,
other people in the Gulf saying, `Look, you've not done enough in the first instance to mitigate against this kind of catastrophe and now to help.'
Are you - do you believe that there is anything that's going to change in that calculation?
SFAKIANAKIS: You know, Saudi Arabia, the UAE as well as others in the Gulf have been trying to do whatever is needed to support all these aid
projects. But at the same time, the civil war in Syria can only be sorted out if Bashar leaves.
Also, in the case of regional aids, Saudi Arabia as well as the UAE has been helping enormously the case of Egypt, the case of Yemen - more
than $25 billion have been given to Egypt and countless of billions of dollars have been given to Yemen.
This has been done without any actual ground commitment from the West. So the West has to come in at some point and support Saudi Arabia. It
cannot do it alone.
NEWTON: OK, but sir, many people say that you - your - Saudi Arabia is in a unique position to be able. You say you've given this money. Of
course you have. It takes more than money.
These are your brothers, your sisters who right now are in harm's way, have been fleeing what has been going on in Syria. What more can you do?
You've seen -- many people in Saudi Arabia have seen - the desperate plight of these people. There must be more that Saudi Arabia can do.
SFAKIANAKIS: For sure. I mean, it's not just a Saudi problem. It is a Middle Eastern problem and it is also a global problem. It's a European
problem. So Saudi Arabia can go to a certain extent in support of all these issues in the case of Syria's support - whatever is needed.
But then you need to have the understanding on everybody else.
NEWTON: I can't thank you enough for this frank discussion. I think many times when people are looking at these issues, it's important to at
least air them honestly, and I definitely think you definitely tried to do that. We'll continue to follow this visit with interest. Thank you.
And we will be right back with more of "Quest Means Business" (inaudible).
(COMMERCIAL BREAK)
NEWTON: And we don't need to be in a galaxy far, far away to get a taste of the new "Star Wars" movie. Apparently eager fans have the chance
to take home a piece of "The Force Awakens" months before the films' release.
New toys have gone on sale around the world. The day's been called "Force Friday" and it's estimated that the merchandise could generate - oh
my goodness, -- $5 billion in the next year. Paul La Monica has more on this.
(BEGIN VIDEOCLIP)
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: When the clock strikes midnight on September 4th, 2015, the Force Awakens.
Star Wars fans rejoice. Hundreds of them are her in New York's Time Square, gathering outside Toys R Us and the Disney Store to be the first
diehards to get their hands on the newest toys from the most buzzed-about movie of 2015.
(LOUD CHEERS)
LA MONICA: New "Star Wars" toys are going on sale at midnight.
[16:50:03] Male: The stage for tickets are -
LA MONICA: No, no, no - toys. Yes, merchandise, yes.
Male: This way other people here are waiting for.
LA MONICA: Yes, this store is going to open at midnight, yes. But I got a little sneak peek. I don't know who Constable Zubio is, but he looks
pretty cool. I also got a bit of Jedi training.
JOE NINIVAGGI, GLOBAL MARKETING, HASBRO: There's nothing like getting a light saber in your hand. You feel like you're in the movie. To be able
to have different forms of lightsaber like Kylo Ren, it's such an awesome light saber that we've never seen. We saw it and we were like we're blown
away. This totally inspires us to go in a totally different direction.
LA MONICA: What characters can you talk about in the new movie that might be something we should be keeping an eye out for?
NINIVAGGI: Well, I mean there are a whole bunch of different Storm Troopers. there are types of desert creatures that we have figures of that,
you know, you have seen them in sort of teasers and trailers that J.J. Abrams put out but you don't know much about yet. They're all in the line.
LA MONICA: So given that you guys are making toys about the movie, there's got to be things that are still coming out that hint at plot
developments. What -- is there anything you know specifically about plot in "The Force Awakens" that you probably can't tell me under penalty of
(inaudible)?
NINIVAGGI: Do you seriously want to see me get force choked on camera right now? Is that what you're asking?
LA MONICA: The line outside Toys R Us was eight hours in the making. At midnight the early birds reaped the rewards.
So why are you here when you could just buy this stuff online?
Male: Where is the fun in that?
(END VIDEOCLIP)
NEWTON: (LAUGHTER). Well "The Force" is strong with Bobby Roberts who co-hosts and co-produces the "Star Wars" podcast "Full of Sith." And
he joins us now from Portland, Oregon.
This is old, it's as olds as me or pretty much I'm older than it, but let's just say it was something from my childhood. Why do you think the
"Star Wars" entity just has so much staying power for people?
BOBBY ROBERTS, CO-HOST AND CO-PRODUCER, "FULL OF SITH": I think it's a combination of two things. One, which is probably a little bit nicer and
more (LAUGHTER) generous and one is probably a little bit more mercenary and commercial.
The first is that I think for a lot of people "Star Wars" ends up being sort of like that first key in the lock that opens up the entire
realm of imagination and mythology. It's like the first time people really get to wrap their heads around the idea of fictional universes and how big
and how vast and how interesting they can be.
The more mercenary aspect of that is that - I'm 37 years old. My generation and the generation that followed were the first generations
wherein children became like a viable demographic for both marketing and selling all manner of things to.
And so I mean you combine those two things, the fact that our imaginations have been awakened with the fact that there are multiple
corporations out there now that are tuned to getting us as many plastic versions of that imagination as possible.
I think that's sort of why - I mean, "Star Wars" is essentially the synergistic combination of both hope, mythology and commerciality. I think
that's why you can get things like what just happened last night and it's still going on today and will be going on non-stop - I was going to say
until the movie opens - but since there's going to be one of these movies a year for the foreseeable future, it's pretty much -
NEWTON: (LAUGHTER).
ROBERTS: -- going to be like this for -
NEWTON: It's going to be with us for a long time. Wow, Bobby, that was incredibly poetic - who knew about "Star Wars."
You know, Bobby, I saw the first "Star Wars" movie three times. I remember sitting in the theater, I remember being wide-eyed, I remember the
little butterflies in my stomach. I mean, it was amazing.
Do you worry that the movie coming out in the fall will disappoint my children who of course are absolutely disillusioned, or let's say so used
to all of these movies, it's like - eh.
ROBERTS: I think - I think a good thing to look at when it comes to whether or not this film is going to appeal to more than just long-time
"Star Wars" fans or even fans who jumped on back when Fedametas (ph) came out to look at what J.J. Abrams, the director of this film, did with "Star
Trek."
Now, I'm also a "Star Trek" fan, so know that when I say this it's not coming from a place of anger or disillusionment. But "Star Trek" was
basically dead. It was desiccated, it was dusty dirt when they gave it to J.J. Abrams to renovate.
And that movie did really well and it sort of reignited the "Star Trek" brand. And it did so because it made the movie look interesting to
everyone else that wasn't already a fan. And I think that's kind of what he's trying to do with "The Force Awakens."
Now currently a lot of the marketing is focused very heavily on, you know, practical effects. It's not saw -
NEWTON: Sure.
ROBERTS: -- back in '99 or 2002. And a lot of that is, you know, that's a strong message that they're pushing right now. But if this movie
is going to be successful and not just financially because I think it's a foregone conclusion that it's going to be successful financially, --
NEWTON: Right, right.
[16:55:01] ROBERTS: -- I think it needs to do what happened on Star Trek. J.J. Abrams needs to be able to make a "Star Wars" movie that feels
like an appropriate hop-on point for people who have heard of "Star Wars" but, you know, don't really care about it and definitely wouldn't be in
line for eight hours in Times Square to buy themselves a little remote- controlled BB8.
NEWTON: (LAUGHTER). I hear you, Bobby. We'll wait and see if it meets all of those expectations, full disclosure, the dancing storm
troopers are a bit creepy - they got to do something about that. Bobby, see what you can do, OK?
ROBERTS: (LAUGHTER).
NEWTON: Have a great night. I appreciate you joining us, thanks.
Now the ECB has tried a lot of things to get Europe's economy growing. Now its latest measure is a little more - avant-garde shall we say. We'll
show you what we mean up next.
(COMMERCIAL BREAK)
NEWTON: Now the old saying that money doesn't grow on trees - well, the European Central Bank seems to think the two actually go very well
together. This is a sculpture that now adorns the main entrance of the ECB headquarters in Frankfurt.
It's called "Gravity and Growth," a 17-meter-high bronze tree - bronze - by the Italian sculptor Giuseppe Penone. Now he won an ECB competition
which cost more than $1 million to organize.
According to the Central Bank it conveys a sense of stability and growth rooted in the humanist values of Europe. Mario Draghi will
officially unveil it next month and - OK, we have to say in the words of our senior producer Richard Davis that the tree looks a bit petrified,
perhaps like the ECB itself right now.
Sorry but - anyway, staying in Europe - uncertainty over the Fed rise interest - Fed raising interest rates fueled the selloff on the major
markets this week. Take a look at that - not good at all.
The London FTSE and the Paris Cac-40 took most - took most of it and they were down about 3 1/4 percent for the week overall.
In the United States, meantime, the Dow Jones closed down 272 points Friday to finish out yet another five days chock full of volatility.
[17:00:06] And that's it for us here on "Quest Means Business." Have a great weekend.
END
