Return to Transcripts main page

Quest Means Business

UK Rolls Out Red Carpet for Chinese President; Pomp, Protest for Chinese President's UK Visit; Chinese Foreign Investment; European Stocks Fall; Trudeau's Liberal Party Wins Landslide in Canada; Former Canadian Foreign Minister on Election Results; Thousands of Migrants Stranded in Serbia. Aired 4-5p ET.

Aired October 20, 2015 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[15:59:55] (NEW YORK STOCK EXCHANGE CLOSING BELL)

RICHARD QUEST, HOST: With a name like this, it had better be good. Smucker's is ringing the closing bell on Wall Street on a day when the Dow

-- very small change, pretty much like yesterday, just a little movement.

(GAVEL POUNDS)

QUEST: Wow! We got five hits of the gavel, that's two more than usual, on Tuesday, it's October the 20th.

(LAUGHTER)

QUEST: The little things in life please me. Tonight, the UK rolls out the red carpet and hopes China gets out its checkbook.

It's a new leader with a familiar name, and it offers Canada a fresh start.

And Jeremy Renner, who starred in "American Hustle" with Jennifer Lawrence, tells me we should all have been paid equally.

I'm Richard Quest. We have an hour together, and I mean business.

Good evening. The place to be in London tonight is at Buckingham Palace, where there is a state banquet in honor of the Chinese president,

Xi Jinping. The UK rolled out the red carpet and hopes China got out its checkbook.

Along the way, Xi Jinping has addressed Parliament in London and then the Chinese president met members of the royal family in a classic parade

down the mall. He is now at a state banquet at Buckingham Palace, hosted by Her Majesty the Queen. They do it rather well over there.

Now, lurking beneath the pomp, there are concerns over China's human rights record, its military build-up, and British jobs that have been lost.

Nima Elbagir has our report.

(BEGIN VIDEOTAPE)

NIMA ELBAGIR, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The Diamond Jubilee carriage, a 41-gun salute --

(GUNFIRE)

ELBAGIR: -- and both houses of the British parliament sitting rapt. A very warm and royal welcome for the Chinese president. But there were

some voices the pomp and ceremony couldn't drown out.

(CROWDS SHOUTING)

ELBAGIR: President Xi Jinping supporters began lining the mall at 6:30 in the morning, waiting patiently to wave their president past.

UNIDENTIFIED FEMALE: Great day! I saw my president and the wife of the president and the queen. It's so amazing.

ELBAGIR: But hidden amongst the frantically-waving flags, barely visible from the gilt-edge royal carriage, human rights activists stood

patiently, a reminder to President Xi of the controversy stirred by his government back home. And a reminder to the British prime minister of the

controversy this visit has inflamed in the UK.

The 18-year-old leader of Hong Kong's pro-democracy movement, Joshua Wong, is due for sentencing in court in Hong Kong next week. The risk of

an extended sentence didn't deter him, though, from flying to the UK today.

JOSHUA WONG, HONG KONG PRO-DEMOCRACY LEADER: The British government, they always claim that they're concerned about the importance of democracy

and freedom, they get ignored and blind their eyes on the human rights issue in Hong Kong and China.

ELBAGIR (on camera): This state visit comes amidst what human rights organizations are characterizing as an ongoing state crackdown, and those

who came to protest this visit here today said that they came because they didn't want those names to be forgotten.

Names like that of the 2010 Nobel Peace Prize winner, Liu Xiaobo, who is currently serving an 11-year sentence for undermining state authority.

Or that of Wang Yu, who is under house arrest, accused of inciting subversion.

ELBAGIR (voice-over): At the heart of all this razzle-dazzle is a bid to create a strategic shift in Anglo-Sino relations to the tune of $46

billion. That's how much the tranche of newly-announced Chinese investment deals are worth. And yet, more investment is hoped for.

Perhaps that's why the Prince of Wales was among the first to meet with President Xi and his wife. A staunch supporter of the Dalai Lama,

Prince Charles won't be attending the official state banquet, but he has been careful to invite President Xi for tea.

Addressing the British parliament, President Xi deployed quotes from both Shakespeare and Chinese proverbs to reinforce the same message. "We

are in this together."

Both sides share, it seems, the same hope, that this relationship will grow closer and more and more profitable.

(APPLAUSE)

ELBAGIR: Nima Elbagir, CNN, London.

(END VIDEOTAPE)

[16:04:59] QUEST: Notwithstanding the temporary problems of the Chinese economy, the British leaders have rolled out the red carpet as,

indeed, have we for the Chinese president and, of course, the money that comes with such a visit.

The British are not alone. China's foreign investment is up more than 700 percent over the past decade. And again, even allowing for minor

problems at the moment, it still invests as much abroad as it does at home.

Look at this map and you will see that all the countries highlighted have received Chinese investment over the past ten years. In terms of most

dollars, obviously, the United States. But relative to economic output, it's countries in Africa that get the most. You can see the percentages

underneath. More than 5 percent of GDP in countries like Chad, Sierra Leone, and Guinea all come from China.

And that gives you an idea. But when you look at the range of investments, not just in the companies. Look at the range of where the

money goes, and you'll get a very interesting picture, too. Because here, you see more than half the money goes right into the energy sector, $477

billion over ten years.

Now, that's powering, manufacturing back home, $100 billion for transport, and then you've got metals, real estate, finance, and on it

goes. Overall, you've got tens of billions of dollars going into the different economies of investments.

But once again, keep in mind, it's all predicated on a stronger Chinese economy. And the question, of course, is the slowdown, where that

leads in the future.

Now, China's economic slowdown has dragged commodity prices lower, and the share of energy firms and mining firms, and those companies amongst the

worst performers on the European indices.

Take a look at the numbers. Stocks across Europe fell off their recent highs. The steel producers were particularly hard-hit after Tatter

Steel said it would lay off 12 British workers. The company blamed the high cost of strong pound and cheap imports from China.

No way of getting around it: one of the big issues we'll be talking about in the days ahead, of course, is the issue of steel imports into

Europe as it relates to China.

There was an electoral upset of monumental proportions in Canada in the last 24 hours. Out go the Torries, in come the liberals, and that's

the many with a famous name, but Canadians have decided Trudeau once again. QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[16:10:22] QUEST: The quote is, "Sunny ways, my friends, sunny ways." That's what the prime minister-designate, Justin Trudeau, promised

as he ushered in a new era to Canadian politics.

In Ottawa, in Toronto, from the east to the west, it was a dramatic leap to the left in Monday's general election as Trudeau's Liberal Party

was handed an absolute majority in parliament, kicking out Stephen Harper and the Torries, who'd been in power for more than a decade.

It sparks the beginning of a new political dynasty. It comes nearly 50 years after his father, Trudeau -- Pierre Trudeau, assumed the role.

Now, the son is promising a clear alternative to a decade of conservative government.

(BEGIN VIDEO CLIP)

JUSTIN TRUDEAU, PRIME MINISTER-DESIGNATE OF CANADA: Canadians have spoken. You want a government with a vision and an agenda for this country

that is positive and ambitious and hopeful. Well, my friends, I promise you tonight that I will lead that government.

(APPLAUSE)

TRUDEAU: I will make that vision a reality. I will be that prime minister.

(APPLAUSE)

(END VIDEO CLIP)

QUEST: Very different style to Stephen Harper. And just as the maple leaves are changing color across Canada in what must be a bliss of autumnal

change, so Trudeau's economic policy will be subtly changing, yet significant in a country as hugely relevant on the international stage.

Think about it. Canada, first of all, it is a G7 economy, and has been pretty much since the start. It's also the fifth-largest oil producer

in the world. We often forget that when we think about the OPEC countries, but don't forget Canada.

And it's the only other North American country on the TPP. It's also party of NAFTA. So, how Canada views the Transpacific Partnership is

crucial, and the amount of trade between the US and Canada in dollar terms is the single largest bilateral relationship of trade in the world. CNN's

Clare Sebastian now on what the Trudeau promise will mean for a new tone in Canada.

(BEGIN VIDEOTAPE)

(CROWD CHEERING)

CLARE SEBASTIAN, CNN PRODUCER (voice-over): It was a landslide victory in an election where few expected one.

TRUDEAU: This is what positive politics can do.

SEBASTIAN: Justin Trudeau campaigned and won on a message of positivity, even amid his opponent's relentless criticism of his lack of

experience.

(BEGIN VIDEO CLIP)

TRUDEAU: And the budget will balance itself. Balance itself.

(END VIDEO CLIP)

SEBASTIAN: Some believe the attack ads actually played in his favor.

UNIDENTIFIED MALE: The voter turnout rate was as high as it was almost to 1993. So, Mr. Trudeau clearly was able to mobilize a different

segment of the voting population.

SEBASTIAN: The 43-year-old's victory creates the closest thing to a political dynasty Canada has ever had. Justin Trudeau was born during his

father, Pierre Trudeau's, first term as prime minister, a post the elder Trudeau held for a further 12 years. Now, the younger Trudeau is promising

a new start.

(BEGIN VIDEO CLIP)

TRUDEAU: Now is not the time for cuts.

(END VIDEO CLIP)

SEBASTIAN: He campaigned on more government spending to revive a fragile economy.

TRUDEAU: There's been a housing boom, a real estate boom. There's concern that there's too much consumer debt, and that there might be a

bubble in that sector once interest rates globally and the US and elsewhere might start to creep up again is that something that might prick the

bubble.

SEBASTIAN: He's also promising a parliamentary debate on the Transpacific Partnership, a deal his predecessor negotiated just weeks

before the election. And in another departure from the previous administration, he's promising tougher action on climate change, including

a nationwide carbon pricing mechanism.

(CROWD CHANTING)

SEBASTIAN: Something that could help resolve a stalemate with the US over a major oil pipeline.

UNIDENTIFIED MALE: Some people have speculated that if Canada had a more proactive approach to tackling greenhouse gases and was seen as more

of a leader on the global climate change file, then it might have had an easier time getting through Keystone.

TRUDEAU: It's time for a change in this country, my friends.

[16:14:58] SEBASTIAN: With a G20 summit and a global climate summit coming within his first two months in office, Canada won't have to wait

long to find out just how much change Mr. Trudeau brings.

Clare Sebastian, CNN, New York.

(END VIDEOTAPE)

QUEST: John Baird is the former foreign minister of Canada, and a member of the party which has just spectacularly lost. Joining me from

Toronto, I asked him what he makes of the election results.

(BEGIN VIDEOTAPE)

JOHN BAIRD, FORMER CANADIAN FOREIGN MINISTER: After ten years, I think it's historic in Canada that people do look for change. The party

was only about seven or eight points behind the new government.

So, listen, this is democracy. You can't win them all, but I think the government has a lot to be proud of. And of course, obviously, a lot

of interest economically about where the new government will take the country.

QUEST: Now, on that question of the economics, the government is looking to do more stimulus. The government is looking for, if you like, a

more left-wing, a more left-of-center form of economic policy. How do you think that's going to translate in practice?

BAIRD: Well, we'll see. What the government's promised to do is to raise income taxes by 4 points, 4 percentage points on anyone making more

than $200,000, pledging to keep corporate taxes stable.

But to from the balanced budget that Canada has today to run deficits over the next three years to funnel tens of billions of dollars into

infrastructure, both to meet infrastructure demand and to boost the economy.

QUEST: Right, but one can see that that is a policy and a strategy that, frankly, this idea of deficit spending is very much out of vogue at

the moment.

BAIRD: It's funny, in Canada, if you'd ever told me that a party would campaign on going into a deficit when the economy was growing, I

never would have believed it.

But I think that when people look for change, the Social Democratic party here in Canada promised balanced budgets, and I guess to

differentiate themselves, the new government took a more bold policy, they took a risk, and it obviously paid off for them yesterday.

QUEST: The relationship with the United States, arguably the most crucial diplomatic relationship that Canada has, and one that you have

nurtured over many years, where will this -- where we will see a difference with the US?

BAIRD: I think there's going to be good news for President Obama and bad news. Good news is he'll have a like-minded ally on the climate change

file leading up to the convention of the parties in Paris in December.

The bad news is, the first thing that the new prime minister will tell him is he's withdrawing our combat forces from Syria and Iraq. So, it'll

be some good news for the American administration and some bad news.

On the Transpacific Partnership, I think the new prime minister took a more nuanced stand, promising to study it, and I think there's every reason

to be optimistic that if that goes well, the deal can be re-ratified here in Canada by our new parliament.

QUEST: Right, because there's one thing that Canada will not be able to do to some extent. It's not going to be able to reopen the Transpacific

trade partnership, so either Canada goes along with it -- I mean, the government's hands are tied there. It either goes along with it or it has

to withdraw from TPP.

BAIRD: Absolutely. It's going to be take it or leave it. These negotiations went on for years and years and years. They went into

quadruple overtime. And the new government will have to look at it, and parliament will have to -- study it, and then given an up or down vote.

My gut tells me that the new parliament will, after careful study, will support the deal. It's a great deal for free traders. It's a great

deal to grow the economy. And it's not just free trade with Japan and Vietnam for Canada, it's also a major rewrite of NAFTA, which should create

more jobs on both sides of the border.

QUEST: The Keystone XL pipeline project: one is not quite sure where anyone truly stands on this until crunch time comes and a decision has to

be made.

BAIRD: Sure. The new prime minister said long before the election campaign that he supported the construction of the pipeline. I guess all

eyes will continue to be on the White House and whether President Obama gives it the green light.

My gut says that this administration will not approve the pipeline, and it'll be sitting on the next president's desk for a decision -- for a

positive decision, at least.

(END VIDEOTAPE)

QUEST: That's John Baird, the former foreign minister of Canada. As QUEST MEANS BUSINESS continues tonight --

(RINGS BELL)

QUEST: -- refugees and royalty. Joining me is Princess Katherine of Serbia. We're going to be discussing what Her Royal Highness has been

doing in the handling of the influx of people desperate to get to Europe. I'll be in the Royal Suite.

HER ROYAL HIGHNESS PRINCESS KATHERINE OF SERBIA: Thanks, Richard.

[16:19:57] (COMMERCIAL BREAK)

QUEST: Thousands of migrants and refugees are stranded in Serbia as countries to the west of Serbia tighten their borders. So, what's the

result? Chaotic scenes like this one in Serbia's Croatia border.

And the conditions are hellish, according to one UN official. There are shortages of aid, shortages of shelter, there are fisticuffs and

scuffles with officials. Desperation has arrived, and the weather, of course, as winter draws in, gets ever closer.

Now, there are limits in place on the Serbia-Croatia border and on the Croatia-Slovenia border. It's creating huge bottlenecks. You get an idea

of where we're talking about. Here you've got Serbia. Remember, the refugees coming up from the south through Serbia, aiming to get -- or

Croatia -- aiming, of course, to get to northern Europe, Austria and Germany.

We know the situation between -- on the Serbia and Hungary border already closed. And you take the Croatia border. The UN says the worst

areas are Bapska and Sid. Hungary's closed its border with Croatia on Friday. A tinderbox is being created, a pressure cooker, if you like.

Princess Katherine of Serbia joins me now in the C Suite. Her Royal Highness and her husband have been distributing aid to children and to

refugees and families in her country.

KATHERINE: Very good to see you.

QUEST: Her Royal Highness says this is a crisis in every sense of the word. Joins me now. Princess Katherine, describe in a couple of sentences

the situation that you have seen.

KATHERINE: Well, waking up in the morning in the royal palace and being told there's several thousand immigrants right next to us in a park.

I ran there to see what happened. Children were on the floor, on cardboard boxes. There was hardly no food. Everybody in Serbia was trying to help

them, but they came in so fast.

And they came through for several days, and the next bunch comes. And it's really heartbreaking, because taking baby food, taking diapers, taking

hygienic things. But these people at the end of the day left their homes. And they don't know where they are going. They don't know where they're

going to end up.

QUEST: And from those that you've seen, are we talking about Syrian refugees? Are we talking Afghanistan? Where are they coming from that you

could tell?

[16:24:56] KATHERINE: The majority were Syrians, from what I understand. The majority were Syrians. But you see, they've all got

children. They all -- the people of the world, these are people who were forced out of their homes because of the situation in their country. These

were people who, their children had a home and no longer having a home.

All of a sudden, they don't know where they are, what they are doing, where they are going. And it is really very destructive to see something

like that.

QUEST: They all want to go north. They're all trying to get --

KATHERINE: They're all trying to get away from this madness. They're trying to get away from a situation in their home where they will full of

fear.

QUEST: But in this situation where the cry is always something must be done --

KATHERINE: Yes.

QUEST: -- the question is, what and by whom?

KATHERINE: Well, what can be done is first of all, we must make sure that we help the countries before the people leave their countries. That

we help them have peace and to be able to work things out. We need leaders, Richard, that put people first. We need leaders who do not work

against the people, they're working for the people.

We live in a world where there's money for war, but there's no money for peace. There is strategy for war, but no strategy for peace. And we

have to all together, the whole world, decide to invest in peace.

QUEST: Now, you obviously -- Your Highness, you're seen your fair share of war and destruction on the continent of Europe, and you're

certainly seen your fair share of misery within Europe.

KATHERINE: Well, we have. Because as you know, my husband was in exile for more than 50 years. And we came back home because he brought

democracy to the country.

QUEST: Did you ever think you would see a refugee crisis in western or central Europe again in your life?

KATHERINE: Never. Never. And when we came to Serbia to live and moved into the royal palace 14 years ago, I had 600,000 refugees I was

looking after, and I never thought that we'll ever -- and this was Serbian refugees.

These were refugees that had come, actually, from the former Yugoslavia not just Serbian. Because as you know, we were a country that

connected, and all of a sudden dismantled. And this is what we have.

QUEST: But if we look at the problems, the EU says they'll have meetings and they'll come to an agreement, and Hungary doesn't want to take

any more, and Poland is against the so-called quota system. And the situation with Syria gets ever worse now that the Russians are also

involved in an air campaign, and the United States.

I don't want to sound unduly, horrifically pessimistic, but your call is falling on deaf ears, here, Your Royal Highness.

KATHERINE: I understand that. And I think that maybe what we need to do is think more that this world needs much more attention. But all these

wars, all these conflicts, all these problems around the world has not allowed us to do that.

I'm a humanitarian. My husband and I are trying very hard to take care of the people of Serbia because after the war, we still had the

highest incidents of breast cancer in Europe. We still have the highest -- we have had the highest incidents of birth -- babies dying because of women

being late in having families and all that because of the war.

The wars is something that we must stop in this world if we want the people to live a peaceful life. And this is what I'm worried about. I

never thought I would see in Serbia a refugee from Syria or Afghanistan or anywhere else. It is worrying, and it's winter coming, like you said.

What do we do next? Where are these people going to go? Where are the shelters that we've been promised? What is going to happen?

QUEST: Thank you very much, indeed, for joining us. I appreciate it.

KATHERINE: Thank you. Thank you very much.

QUEST: QUEST MEANS BUSINESS.

[16:28:45] (COMMERCIAL BREAK)

QUEST: Hello, I'm Richard Quest. There's more "Quest Means Business" in just a moment when we're going to hear from the amateur hackers who say

they hacked the head of the CIA's emails. What did they see and reveal?

The Oscar-nominated actor Jeremy Renner tells me it's time to close the Hollywood pay gap. Before all of that, this is CNN and on this network

the news always comes first.

The U.N. Secretary-General Ban Ki-Moon is urging Israelis and Palestinians to step back from what he's calling "disastrous abyss."

The Secretary-General's on an unannounced trip to the region. He's meeting separately with Israeli and Palestinian leaders in an effort to

claim weeks of violence.

Canada's next prime minister says he wants to restore its reputation for being a compassionate country. Justin Trudeau's Liberal Party won an

absolute majority in Monday's elections. He plans to reopen Canada's doors to immigrants and accept more refugees from Syria.

Speaking to supporters on Tuesday, he said he wanted to change Canada's standing on the world stage.

(BEGIN VIDEOCLIP)

JUSTIN TRUDEAU, LEADER, LIBERAL PARTY: I want to say this to this country's friends all around the world. Many of you have worried that

Canada has lost its compassionate and constructive voice in the world over the past ten years.

Well, I have a simple message for you - on behalf of 35 million Canadians, we're back.

(APPLAUSE/CHEERS)

(END VIDEOCLIP)

QUEST: Slovenia is warning the influx of migrants and refugees crossing the Southeastern Europe threatens to shatter European solidarity.

Officials say 8,000 migrants entered the country on Monday. Slovenia's government is urging other E.U. countries to do more to solve

the migrant crisis.

The President of China Xi Jinping is attending a banquet at Buckingham Palace as he ends his first day on a state visit to the United Kingdom.

In a rare address to both Houses of Parliament, the Chinese president praised the bonds between Britain and China.

(BEGIN VIDEOCLIP)

XI JINPING, CHINESE PRESIDENT, VIA INTERPRETER: I am already deeply impressed by the vitality of China/U.K. relations and the profound

friendship between our peoples.

This gives me good reason to believe that my visit will lift the friendly ties between our two countries to a new height.

(END VIDEOCLIP)

QUEST: Former Olympic and Paralympic star Oscar Pistorius is now serving the rest of his sentence under house arrest. Pistorius was

transferred from jail to his uncle's home in Pretoria in South Africa on Monday. He spent about a year in prison for killing his girlfriend Reeva

Steemcamp.

[16:35:13] The recent rally in U.S. stocks has paused for the second session on Tuesday (RINGS BELL). (AUDIO GAP) take a look and see exactly

how the markets have been trading.

And you'll see - remember yesterday how we had just a little twiddle of the Dow. I think it was up 14 points or something. Well today we are

just down 13 points in a measure similar to yesterday's, we were very sharply down.

But just look at that - very small movements and the significance of this -- as the market is looking for direction, the significance of course

is most firmly in an era of volatility, so little movement at the moment.

Yum! shares, the KFC Company, is splitting off its Chinese business. That was one of the talking points in the market. Also, Yahoo! shares are

down in after-hours trading.

Marissa Mayer says the company will focus on fewer products with higher quality. Now, Yahoo! has just reported third quarter earnings. The

stock's down some 3 percent.

The priority for Yahoo! still remains the spinoff of the Alibaba stake which the IRS has said will not receive favorable tax treatment.

The question of course is aside from the Alibaba stake, how is Yahoo! actually trading. And that really is a question for Paul La Monica.

PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: Thank you, sir.

QUEST: When we look at Yahoo! and what those numbers came out, what did you make of them?

LA MONICA: This is still a company in transition. There are some hopeful signs that things are stabilizing, their ad revenue is up a little

bit but earnings and sales still missed forecast.

The guidance isn't great either. Marissa Mayer still has a lot of prove and it doesn't help that it goes everyday it seems that there's

another executive leaving for a competitor or a startup.

There's a lot of talk about a brain train at Yahoo! and that's obviously troubling.

QUEST: Yahoo! is one of those companies that seems to be perennially in trouble.

LA MONICA: It's true. They have had this going on with so many different CEOs, not just Mayer.

QUEST: But it's not because it's a company without a purpose?

LA MONICA: I think you could argue that Yahoo! is stuck in a world where people don't really know what to use it form.

I mean, I use it for fantasy football. Honestly, that's my main reason why I use yahoo. But Google, Facebook, Twitter - there are so many

other online properties with better mobile apps arguably that people are using more. And I think that's one of the reasons why Yahoo! is still

stuck.

I mean, is Yahoo! a media company, is it a search company, is it a tech company? I don't think Yahoo! knows.

QUEST: And also of course the old days of the AOL walled garden, now you don't need to go to Yahoo! Books, you go to Books.com or whatever it

might be. You go to a source.

LA MONICA: Exactly. Yahoo! is definitely I think a bit of an anachronism in some respects. It is somewhat of a vestige of what the

internet was in the middle 1990s.

QUEST: She's trying to change it though.

LA MONICA: Yes. You've got to give her credit. She's doing a lot, it's just not all working.

QUEST: Tesla. Tesla's stock is down quite sharply - about 5 to 6 percent today - because "Consumer Reports" says that it is not happy

because what they've - now look, they had 6.6 percent. What's the problem here?

LA MONICA: The problem is that "Consumer Reports" had previously said that the Model S is one of the best cars they'd ever driven. It's almost

perfect from a driving standpoint.

But the reliability, because of the electric motor - because you have to plug it in -- there are concerns about that so they actually took away

their recommendation.

And since Tesla charges a premium price based on the notion that this is the best car ever out there, Elon Musk is going to tell you how great it

is all the time.

Tesla stock being a richly-valued, dare I say overvalued stock, bad news like this will ding it.

QUEST: Come on. Not one person is not going to buy a Tesla because of that recommendation being take away -

LA MONICA: If you can afford it. That's probably true but Tesla's future relies not just on the people who can already afford the Model S and

the SUV, it's the Model 3 car that's going to be the cheaper one with the Gigafactory they're building, all of the batteries that they'll be able to

produce.

The average consumer, if they're going to go electric - especially with gas prices this low - if they remain this low for a long time, you're

not going to buy a Tesla if it's not reliable.

QUEST: How is your Tesla running?

LA MONICA: Ah, yes. My Tesla is the one I go visit in the mall at the Time-Warner Center. I say hi to it and wish fondly that one day -

QUEST: Generous of you to lend it to them.

LA MONICA: -- I'll own it.

QUEST: I noticed there was a curtain around it today (RINGS BELL).

(LAUGHTER)

QUEST: Thank you very much -- Paul La Monica.

LA MONICA: Thank you.

QUEST: Now when we come back, women actors or actresses as they used to be called in my day. They earn less than male actors, and Jeremy Renner

is going to tell us that's not right after the break.

And we're also going to hear about one life, make the most of it and why Remy Martin believes we are more than the sum of our parts.

(COMMERCIAL BREAK)

[16:42:46] QUEST: "Quest Means Business." Time for a tipple. Remy Martin has gone Hollywood with its largest ever global marketing campaign.

(BEGIN VIDEOCLIP)

JEREMY RENNER, ACTOR IN COMMERCIAL: I don't want to be known for one thing that I do. But everything that I do. After all, you only get one

life, so live them.

(END VIDEOCLIP)

QUEST: "You only get one life, live them." Jeremy Renner encouraging us all to live life to the fullest. He's now the brand ambassador for Remy

Martin.

I spoke to the actor alongside Philippe Farnier, chief exec of Remy Martin USA, and I asked Renner why he got involved. Why did he want to be

brand ambassador?

(BEGIN VIDEOCLIP)

RENNER: Well, it's my life, I mean, hopefully how I choose to live it, and -

QUEST: But of your various different attributes, which is the most important?

RENNER: Probably one that's not listed - being a dad.

(LAUGHTER)

RENNER: But the level of importance, there is no level of importance at all. It's like picking your favorite child or something. They're all

things that I love to do and this is sort of celebrating things that you can be more than one thing.

QUEST: You can be more than one thing.

RENNER: Sure. Anyone and everyone can be.

QUEST: Do you believe that?

PHILIPPE FARNIER, CEO, REMY MARTIN USA: Yes, oui. I think and you also I imagine that at the end - well (AUDIO GAP) at the end of your life,

you don't want to say 'Why didn't I do that?' And that's exactly what the - what we feel looking to our customer.

I mean, everyone that probably part of the new project - the new project of -- life project. You want to do as many things as possible,

just not one thing.

QUEST: OK, but -

FARNIER: You can be just - you're a journalist, but you probably may be, I don't know, a painter or DJ at night.

QUEST: Well I assure you I'm neither a painter - if I'm a painter then it's a very bad artist --

FARNIER: Yes?

RENNER: (Inaudible).

QUEST: -- that we're talking. All right, but within that framework of you can just be one thing, because one of the things that -- I tell when

you when you really notice it - when somebody dies.

And you also decide I'm going to make more of my life.

FARNIER: That's true.

QUEST: I'm going to more, I'm not going to, you say - and then within three weeks it's all gone away. You're back to square one. Don't you

think?

[16:45:01] RENNER: Perhaps.

(LAUGHTER)

RENNER: I don't really see things that way, but --

QUEST: You're more optimistic?

RENNER: Yes, I live life differently.

QUEST: Right. What do you expect from him in this campaign as an ambassador? Because I had lots of people on this program where the CEO has

employed a famous actor or something as an ambassador of a product.

And I'm always curious to know what do you expect from him?

FARNIER: In fact we embrace the same as the same lifestyle project. It's more about that. It's more to show that there is the ability of

cognac not to be only one thing like the kind of life of Jeremy.

I mean, he's an actor, he's a famous actor, I mean, embracing many different characters and he's also a musician, he's a producer, he

renovates homes.

So that's all what's the idea of this campaign, the enties (ph) campaign. It's just to show that this product is just not only one thing.

QUEST: Let me ask you, Jeremy.

RENNER: Yes.

QUEST: You're familiar obviously with the gender pay -

RENNER: Yes.

QUEST: -- row.

RENNER: Of course.

QUEST: Did she have a point - Jennifer Lawrence - when she sort of said - I mean, obviously no one of you know how much really any of you get

paid -

RENNER: I have no idea -

QUEST: -- before you do it?

RENNER: Exactly.

QUEST: You know, so it's all ex-post facto. But when you hear ex- post somebody saying, 'Hang on, they got more than me' -

RENNER: Right.

QUEST: -- 'and I did more than them,' what does it make you think and feel?

RENNER: I mean, like you're right. I don't - I barely know what I'm getting paid as I go do a job because I don't usually do job to get paid, I

do it because I really want to go do it.

QUEST: Right.

RENNER: So I'm -

QUEST: But on the issue.

RENNER: Yes, on the issue, yes, you know, when I think about those things, yes, I think everyone should get paid as they should get paid for

it - equally. You know, for the job, it should have nothing to do with gender. Zero.

You got a good job, go do it and I think and obviously, you know, Jennifer's great at what she does so, you know, therefore she does.

FARNIER: May I jump on it?

QUEST: Of course.

FARNIER: I don't feel that Jeremy's the kind of guy with driver which is being jealous. I mean, --

QUEST: No -

FARNIER: -- he's more leisure (ph) than that and he knows perfectly where he wants to go.

QUEST: Do you feel in the industry there's a change, a shift as a result of - I mean, the Sony email made it clear and now we've had everyone

come else (ph), and I agree, you know, you all have your own agents and do your own negotiating as such. But is there a change do you think?

RENNER: Well I hope so. I mean, I hope so.

QUEST: Right.

RENNER: I don't have crystal ball, I can't predict that but I certainly hope so.

QUEST: Do you want this bottle back?

FARNIER: Maybe we can drink it together.

(LAUGHTER)

FARNIER: There's only one glass (AUDIO GAP) but then I will know what you think. (LAUGHTER).

QUEST: Only one glass. Well I guess you guys are out of luck. Thank you very much.

FARNIER: Thank you very much.

QUEST: Thank you very much.

RENNER: Thank you.

(END VIDEOCLIP)

QUEST: I seem to be the one who's out of luck. That bottle has disappeared. When we come back, self-described low tech pot smokers say

they've hacked the CIA director. They spoke to CNN.

You're going to hear all of that after you've had a moment to think about "Make, Create, Innovate".

(COMMERCIAL BREAK)

[16:50:44] QUEST: Remarkable claim - they say they're low tech American pot smokers and they're under the age of 22.

We are now learning more about the group of hackers who say they got into the personal email accounts of the CIA director and the Homeland

Security Director Jeh Johnson.

Now two of them spoke to Laurie Segall - that's the hackers not the secretary and the director. Laurie joins us - let's be clear there -

Laurie joins me now from London.

Hang on, this is fascinating. Do we know which accounts? I mean, were they Google accounts, were they Yahoo! accounts? Were they - what do

we know about this?

LAURIE SEGALL, TECHNOLOGY CORRESPONDENT FOR CNN MONEY: They were able to hack into the private account. It was an AOL account. And what they

told me is - I asked them, I said - how hard was this?

And this is so shocking, Richard, they said on a scale of 1 to 10 and they said we're not sophisticated hackers - this was a 1 on easy.

And I actually had the opportunity to get on the phone and talk to them. Now, I 'm going to tell you they disguise their voice. They did

this to manipulate their voice so we couldn't identify them, as you imagine people are out looking for them.

And they talked to me a little bit about how they did this and what the motivation was. Take a listen.

(BEGIN VIDEOCLIP)

SEGALL: You claim you were able to hack the private email account of the CIA director. How did you do that?

HACKER: Well we have most of his personal information like his name, address, phone number, social security number, and other things.

When we socially engineered we, like, manipulated AOL to like, do the password reset on the account. We socially engineered Verizon and then and

then um we socially engineered to get his last four details on his bank account.

SEGALL: If this is true and it's true that you guys have actually broken in to his private email account, how difficult would you say it is?

HACKER: You mean out of 10?

SEGALL: Sure, out of 10.

HACKER: One

SEGALL: One?

HACKER: Yes.

SEGALL: You guys say you were able to hack into his personal inbox. What did you find?

HACKER: Social security numbers, plans talking about Iraq and Syria. There was a lot of I guess private information, really. He's pretty stupid

really. He's supposed to be so in the government like head of CIA, he should be more clever.

SEGALL: What was your motivation for doing this?

HACKER: Free Palestine (AUDIO GAP) government funds Israel and in Israel. They kill innocent people.

SEGALL: Can you give us any indication of your background? I mean, how old you are, are you in the United States? I mean, anything you can

tell me about yourself?

HACKER: Yes, I am below of the age of 22 years old, I smoke pot and I live in America.

SEGALL: And you smoke pot?

HACKER: All day, every day.

SEGALL: So you think you might have hacked the director of the CIA while you were high?

HACKER: Probably.

SEGALL: So are you sophisticated hackers?

HACKER: I would kind of put us like at the middle maybe. We're not like stupid but we're not really smart. There's a lot of really smart

people.

SEGALL: Do you guys worry about retribution?

HACKER: I'm gonna go to Russia and chill with Snowden. Because I know that the government is pretty mad about this. I'm probably gonna get

tortured. I'm actually a pretty fast runner.

SEGALL: You plan to leak more information. Is there any specific target?

HACKER: Yes, the government and the police and the White House people. They're losers.

(END VIDEOCLIP)

SEGALL: You know, certainly not a dull moment there, Richard. And I will say this - having covered cybersecurity, having talked to very

sophisticated hackers, I've got to tell you, these guys are not sophisticated.

They say it themselves and they talk about it really was - if it is in fact the case that they were able to do this -it was so easy for them to

breach this account.

That's a huge national security issue, Richard.

QUEST: Well, hang on a second, Laurie. Hang on a second. If they breached Yahoo!, or AOL in this particular case, then they were hacking --

or breaking into rather than hacking - like anybody else would have an AOL account.

The same parameters - maybe a more stupid password. But it's not as if they were getting into the secure government servers.

SEGALL: But here's where you run into trouble, right? How do you differentiate those two? Because government officials could be using their

personal information as we've seen in the past - they're personal accounts as we've seen in the past - to have sensitive data in there.

[16:55:04] We saw with the CIA director -

QUEST: But that - but that -

SEGALL: -- there was actually some sensitive data in there.

QUEST: -- that's the director's problem. That's the director's fault. I'm not exculpating the guys, I'm simply saying the director is the

one who (RINGS BELL) has questions to answer.

SEGALL: Look, absolutely. I totally agree with you here. But I think we need to take a look at this, right? And we need to look at

hackers are able to do more and more and more damage and it's easier than ever.

They don't have to be technical. These guys got on the phone, Richard, they called Verizon and pretended to be a Verizon worker. They

called AOL and said can you please reset my password, --

QUEST: Right.

SEGALL: -- and within less than 24 hours if what they're saying is true, they had the ability to be inside the personal email of the CIA

director's inbox.

QUEST: Superb reporting from Laurie Segall joins us from London. Excellent report, thank you Laurie for that.

We'll have a "Profitable Moment" after the break.

(COMMERCIAL BREAK)

QUEST: Tonight's "Profitable Moment". Laurie Segall's remarkable reporting speaking to the hackers. What can one say? And I thought I had

it bad.

All right, my bank account's been hacked at some point, my email's been hacked at some point. Just about everything - credit card I've got

has been hacked at some point.

But when the CIA director and the Homeland Security director of the United States gets hacked as well, then we know we really are in trouble.

And that's "Quest Means Business" for tonight. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, (RINGS BELL) I hope

it's profitable. Let's get together tomorrow.

END