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Quest Means Business
Protesters Call for Chicago Mayor's Resignation; Yahoo! Will Not Spin Off Alibaba Stake; South African President Removes Finance Minister; North Face Founder Dies at 72; Maine's Booming Lobster Industry; DuPont and Dow Considering Merger; The Journey to Machu Picchu; The Grammar of Texting; A Look Into "Hacktivism". Aired 4-5p ET
Aired December 09, 2015 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
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PAULA NEWTON, CNN HOST (voice-over): Celebrities including Sharon Osbourne (ph), ringing the bell today on the markets, very few (INAUDIBLE) stars on
those markets today after a solid start things have not ended well on Wall Street. It's Wednesday, the 9th of December.
Tonight, coming to the spin: Yahoo! says it will split off its core business.
South Africa's finance minister is removed while Iran is left reeling and it's all about the chemistry. Two titans of American industry are set for
a gigantic merger.
I'm Paula Newton in for Richard tonight and this is QUEST MEANS BUSINESS.
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NEWTON: Good evening. We will bring you the day's business news in a moment. But first we want to take you to Chicago, where hundreds of
protesters have gathered to call for the resignation of the city's mayor. Now Rahm Emanuel apologized earlier for how the death of a black teenager
at the hands of police was handled.
Laquan McDonald was shot dead by an officer --
(CROSSTALK)
NEWTON: -- last year. Jason Van Dyke was not charged with his murder after another 13 months. Martin Savidge is with the protesters there in
Chicago.
And Marty, just to bring our international audience up to date who may not have been following this, even if they're following the story, what
happened today?
How did this all unfold?
MARTIN SAVIDGE, CNN CORRESPONDENT: Well, today there was a very passionate, very strong speech that was made by Mayor Rahm Emanuel and a
special address to city council. He took responsibility and he also apologized and at one point his voice seemed choked with emotion.
To many Chicagoans, though, a lot of the words he said they have heard before. These people that are out on the street are calling for him to
resign.
The whole investigation into the police department, the charges of both corruption and in some cases actual murder charges against officers, has
sparked a political firestorm. And it was one clearly he wasn't really initially prepared for.
Today he was trying to get back on his feet. You can tell by the crowd here not everyone is buying the solutions he's put forward.
Right now we're walking on the Miracle Mile; this is the heart of Chicago's financial but most especially its shopping district. You can see a lot of
high-dollar stores here. Macy's coming up, you've got Cartier. It has all been peaceful. It is all carefully organized. It's been going on for
several hours and it's being led, ironically, by the Chicago police.
Primarily what they do is march ahead, close down the intersections, let the protesters through and then move on. There are about as many police as
there are protesters. It may sound loud; there are several hundred participants. But for the most part, it has been peaceful. We have heard
of only one arrest -- Paula.
NEWTON: Extraordinary scenes of what's going on there.
Give us a sense of how much this has basically snarled the city traffic and what the end game is here. It's extraordinary that you tell me that this
is being led by police, obviously they don't want anyone to get hurt and they want to make sure that everyone there can just let off some steam.
SAVIDGE: Well, here I can show you.
See how the police are lining the intersections; this is pretty typical. They will next cut off the traffic to allow the protesters to come
peacefully through. They also create this kind of bicycle shield to protect the storefronts, to try to keep the protesters off the sidewalks.
The organizers themselves are following with bullhorns; they're directing the crowd. They tell them when to go and tell them when to stop. So it is
being carefully maneuvered, both with the help of the police -- I won't say in cooperation with the police and also with those who have organized this
protest.
It's snarling traffic without a doubt but it's not city-wide. It's a very limited, focused area, several hundred demonstrators. You're not shutting
down the city, you're shutting down block after block of a moving demonstration -- Paula.
NEWTON: Yes, and it certainly seems that right now authorities are quite tolerant of it.
But you know, Marty, to get back to the protest here and the reason they're having it, what is the end game?
I mean, are they saying they're not going to stop until Rahm Emanuel quits?
SAVIDGE: That's what the protesters are saying. It's not just Rahm Emanuel. It's Anita Alvarez. She is the county state attorney who many
believe that she has not properly gone after the officers when those officers, at least according to the public here, have been involved in
crimes against primarily young black men.
So the anger is focused both at the mayor -- the police chief here has already been forced to step down. And there are at least two other people
this crowd wants to see, one being the mayor and the other being the state attorney.
So whether they will stop until they get that, hard to say. They have already announced this protest --
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SAVIDGE: -- once they have finished on the street is moving on to a police meeting tonight. It's quite clear they feel that they have leverage on
their side at least in the term of voice and numbers they've got on the street. It's drawing quite a crowd; most people are only coming to watch
though -- Paula.
NEWTON: OK. And we will hope that it stays peaceful. Martin Savidge, thanks for taking us on that walk through those protests for us in Chicago.
We will continue to watch those developments there as they unfold in the next few hours.
Now one of the most famous names in Internet history plans to spin off its own core business, Yahoo! has announced plans to split itself in two, with
the Internet company it's best known for becoming an entirely separate company.
Previous plans to spin off the Alibaba stake have been scrapped and now it's the Yahoo! business itself that will be spun off. Yahoo!'s 15 percent
stake in the Chinese ecommerce giant is worth about $30 billion.
Now here's the problem. Spinning that off could mean that the stock market would value Yahoo!'s Internet business as being worthless, absolutely zero.
Yahoo!'s chairman insists the firm is not looking to sell any part of the company to another bidder. Today Yahoo! shares fell more than 3.5 percent
on the back of that news.
Now CEO Marissa Mayer told CNBC the company is on the right path.
(BEGIN VIDEO CLIP)
MARISSA MAYER, CEO, YAHOO!: I think that our strategy on focusing on search communications and digital content is the right one for Yahoo!,
given our (INAUDIBLE). And when you look at our mavens (ph) mobile video native and social, those are the growing areas of digital advertising. And
so we are proud of our decision to focus on that.
(END VIDEO CLIP)
NEWTON: Now if Yahoo! wants to move forward, it has to act like its users and search. The firm will have to start with what will be left once it
spins off its Alibaba stake.
Now it will still have its Web portal. And that's what's most familiar to us. And the reason why it became successful in the first place, that's
what we know Yahoo! to be. Now Yahoo! is still one of the most visited sites online. And Yahoo! Japan is still quite successful.
Now there's then the online advertising business. Now one advertising research firm predicts Yahoo! will snap up more than $3 billion in
worldwide digital ad revenue this year alone, and that would be about 2 percent of a market that's still a good revenue number there.
And as you heard today, Mayer doubled down on her commitment to improving the company's mobile products.
Nicholas Carlson, the editor-in-chief of "Insider" and he's also the author of a book on Marissa Mayer and Yahoo!.
You really got to help me here. We have been reading about this for a while. This kind of threw me through a loop today. We have gone through
the details. You tell me, what is this going to mean for Yahoo!?
NICHOLAS CARLSON, EDITOR-IN-CHIEF, "INSIDER": Well, what this means for Yahoo! is going forward it's going to be two companies and one is going to
be worth very little and one will be worth about $30 billion, as you said. And that will be the one that's got a bunch of stock in other companies,
mostly Alibaba, actually apparently the Yahoo! Japan stake that Yahoo! also owns a state in Yahoo! Japan.
And it will go with the new company, the new spun-out company. And that'll be mostly that company's value as well. So basically what the market is
telling us right here is that Yahoo!, the company we all have heard of, is worth basically nothing.
NEWTON: It's worth basically nothing because Marissa Mayer's plan hasn't worked or it just in general the model that they already had in place
didn't work?
CARLSON: Right. So Marissa Mayer came in 2012 and it would have taken a miracle to turn the thing around even at that point. I think she's made
mistakes but if, you know, you could resurrect Steve Jobs, put him in charge of this company and it's unclear that it would have been successful.
Mayer did make one very big mistake and that was sort of her first initial strategy. She said, let's do what Yahoo! has always done, which is make
the Internet easy to use.
Yahoo! was very successful in the late '90s, early 2000s, because it made the Web easy to use. And so she said let's make mobile easy to use. The
problem is, by the time you do that in 2012, Google and Apple and thousands and thousands of developers have already been doing that for many years.
NEWTON: In terms of what we -- you know, Yahoo! was an Internet pioneer. Let's face it.
Can you see a time where Yahoo! is completely wiped off the Internet?
We won't see it's footprint anymore.
CARLSON: Well, here's the funny thing about Yahoo!, right, so the Internet is more increasingly becoming the mobile Internet, what you use on your
phone.
NEWTON: It's only on your phone.
CARLSON: I mean, basically people already use their phones to access the Internet more often than they do their desktop computers. Yahoo! is just
like a magazine company or a newspaper company in that it's a legacy media business at this point. And that's the desktop Web.
The desktop Web is a dwindling arena. And Yahoo! dominated that and then kind of got beaten at that by Google a little bit. So it was second or
third place in that. And the that whole arena has just sort of shrunk and Yahoo! hasn't really been able to figure out how to way to dominate mobile.
If you go to the Apple iTunes store and you look at the top apps --
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CARLSON: -- the first one that's a Yahoo! app is at number 56 and it's Yahoo! Mail. Facebook has three apps in the top five and Google has I
think about eight in the top 50. So that just gives you some perspective on where Yahoo! really stands.
NEWTON: You have to give me a prediction. You know a lot about Yahoo!.
Is this the end?
I mean, and how soon could it come?
CARLSON: I think this is the end in this sense. I think that maybe even before spin-out, some sort of private equity firm, some sort of strategic
firm comes in, buys this smaller version of Yahoo!, which as we just noted, still throws off $3 billion in cash.
NEWTON: Amazing flow there.
CARLSON: So maybe they go in and they cut the head count by 10,000 and turn this thing to a profit machine. Then it's a useful business for
somebody.
NEWTON: But not what it was. And not what Marissa Mayer wanted it to be.
Nicholas Carlson, thanks so much for taking us through that. Appreciate it.
CARLSON: My pleasure.
NEWTON: Now, the big change in South African government -- and this made headlines today. We'll analyze the president's decision to remove the
country's finance minister and look at the impact on the economy.
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NEWTON: The South African president Jacob Zuma has removed his finance minister as the country's economic struggles continue. Nhlanhla Nene will
be moved to another key role, according to the president. Now the South African currency, the rand, has fallen to a record low in the wake of the
news.
CNN's Eleni Giokos joins us now from Johannesburg.
Eleni, this really stunned markets today and, yet, is there a presumption with Jacob Zuma's government that, by removing the finance minister, that
things will change?
I mean, clearly, they failed in their policies as the entire government to really be able to recharge this economy.
ELENI GIOKOS, CNN BUSINESS CORRESPONDENT: Well, I mean this is the thing. What was Nhlanhla Nene doing that wasn't working in favor of the economy?
Remember Nhlanhla Nene actually inherited a lot of legacy issues and was dealing with a lot of external factors as well as domestic issues from
Janet Yellen monetary policy to commodity prices coming under pressure.
He was very well known, very respected. He was deputy finance minister since 2008 before taking on the role of finance minister. He was making
very bold decisions to try and steer the economy back on track.
That said, South Africa is only expected to grow by 1.4 percent and now he's being replaced by a very little known lawmaker, David Van Rooyen,
where --
[16:15:00]
GIOKOS: -- when we look at the actual announcement that came through from government today, a very short announcement, saying that David Van Rooyen
was formerly a mayor of a small town in a province in the country and also had started politics in the 1980s, a form of freedom fighter together with
Jacob Zuma.
So he doesn't have a very strong portfolio, not very well known on the international community front, either locally as well. A lot of the chief
economists that I spoke to are voicing concerns, saying they're very shocked and not only that, saying that this could actually be some kind of
political interference within the finance ministry.
NEWTON: That's what I was going to ask you.
In terms of a game plan here for President Zuma, it seems that he obviously just wants to take hold of these issues on his own.
And yet, what is he pointing to, in terms of -- I know that he's met with the Chinese president recently and they are trying to recharge that
economy.
But what is he pointing to in terms of what he thinks is going to get growth or more growth started in South Africa?
GIOKOS: One of the things that we need to focus on is the fact that it's coming, this decision comes at a really bad time. Firstly, it's December.
Liquidity is low. South Africa shuts down.
We're also two months away from the national budgets. And just drawing on the old adage of money is a coward; whenever there's uncertainty, you see a
flight out of an emerging market like South Africa, this is why the rand is now plummeting to a record low.
This also comes just a week later after we saw a credit ratings downgrade that came from both S&P as well as Fitch. We are now teetering on
basically junk status in South Africa.
So what is it going to take to get this country back on track? It's to actually pull back on spending, trying to focus on putting money to work.
And it's interesting you say that the government met with China just last week, signing $6.5 billion worth of deals. If you drill into those deals,
those are mostly funding projects for Paris staples (ph) in the country, such as Eskom, the power utility, which has come under pressure.
We also need to mention that South African Airways, which has been under disarray for a very long time and (INAUDIBLE) just a few weeks ago had made
the announcement saying that South African Airways couldn't go ahead with a very big deal with Airbus. We know that that created quite a bit of tension
within the government as well.
So it remains to seen what David Van Rooyen is going to do going forward and that's going to be one of the big items to kind of -- that's going to
be very telling about whether there's going to be government interference going forward, specifically on the South African Airways deal.
NEWTON: Yes. And there will be a lot of interest in that deal as this goes forward. We'll continue to watch that South African economy. Eleni,
thank you very much, there live for us from Johannesburg.
Joining the home stretch at climate talks in Paris. We'll look at the legacy of a clothing business pioneer turned environmental advocate. And
when it comes to global warming, we'll look at some unexpected winners.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Coming up after the break, why lobster is propping up the entire fishing industry here in Maine.
(END VIDEO CLIP)
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NEWTON: Leaders from around the globe wrap up climate talks in Paris. The business world has lost a passionate advocate for the environment. The
founder of fashion companies North Face and Esprit, very popular brands, he was Douglas Tompkins and he died after a kayaking accident in Chile on
Tuesday.
Now Tompkins sold his share of Esprit in the late 1980s and became a conservationist. He started the Foundation for Deep Economy and founded
nature sanctuaries in Chile and Argentina that cover hundreds of thousands of acres of land. Tompkins hoped to challenge people to seek a new way of
life and a new type of economic plan to help keep endangered species alive.
(BEGIN VIDEO CLIP)
DOUGLAS TOMPKINS, FOUNDER, THE NORTH FACE: It's worth reflecting deeply on why we find ourselves in this slow motion catastrophe we call the
extinction crisis and ponder deeply if we do not need another economy, an economy whose intrinsic logic is to be thrifty and not over-consumptive,
to be conservative and not wasteful, to be restorative and nontoxic to these wild and wonderful creatures that are our fellow members in the
biotic community.
(END VIDEO CLIP)
NEWTON: Tom Butler joins us now and he is from the Foundation for Deep Ecology.
Thanks so much for joining us, Mr. Butler. I mean, ultimately death, a tragic death and yet a very full life.
What do you think his legacy will be?
TOM BUTLER, FOUNDATION FOR DEEP ECONOMY: His legacy will go on forever. Doug Tompkins was a force for nature. And all of us who had the privilege
of working with him and seeing that passion for wild nature were inspired by it.
When the history books are written, he almost certainly will be considered one of the great conservationists of our time and very likely the greatest
national park-oriented philanthropist of all time.
NEWTON: The North Face is such a ubiquitous outdoor brand and then you have Esprit. He talked about consumerism.
Do you see it as an irony or do you see it as a progression that this is a man who started out pioneering that kind of consumerism, cheap consumerism
and those kinds of products to everybody and ended up ending his life, a significant portion of his life, really fighting against that kind of
lifestyle?
BUTLER: Certainly did fight against it, passionately for the last 25 years of his life. He felt like he was making up for that time that he had spent
in the business world, inculcating desire for throw-away fashions.
He wanted to use his wealth and his time and his passion to save wild nature. He often said everybody has the opportunity to be either an
activist or an inactivist and he very much wanted to be active in a way -- he would often quip that you have a choice of paying your rent for living
on the planet or not.
And that was what he chose to do. And the numbers speak for himself, 2.2 million acres of conservation land, five new national parks, one major
national park expansion, it's really an extraordinary legacy and it will go on forever.
NEWTON: I'm sure will continue to live on in your foundation. Mr. Butler, thanks so much for joining us. Appreciate it.
BUTLER: Thank you.
NEWTON: Now, at the climate summit in Paris, U.S. Secretary of State John Kerry announced Washington will double its grant-based program for some
countries most vulnerable to climate change over the next five years.
Within the United States, one community that's feeling the effect of climate change is Portland, Maine. Fish stocks are plummeting. But there
is one species helping the fishing industry claw its way back from the brink: the lobster. Last year it accounted for three-quarters of Maine's
fishing revenue.
Clare Sebastian finds out why in our latest installment of "Sea Change" in Maine.
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CLARE SEBASTIAN, CNN CORRESPONDENT (voice-over): Even at the end of a long day at sea, these lobstermen take their time. Each fresh specimen must be
carefully unloaded. For the state of Maine, there's a lot riding on these spindly frames.
UNIDENTIFIED MALE: People come to Maine, they want to eat a lobster. They want to see a boat go by. They buy a postcard and -- but we're more than
that. You know, we have got 5,000-plus lobster licenses in the state of Maine. And that's 5,000 small businesses --
[16:25:00]
UNIDENTIFIED MALE: -- scattered from one end of the coast to the other.
SEBASTIAN (voice-over): Those 5,000 businesses have had a very good year. In 2014, lobstering in Maine brought in a record $450 million, almost 25
percent more than the previous year.
Rising demand, coupled with a unusually cold winter which delayed the start of the lobster season, pushed up the price per pound. Even so, Train (ph)
says, they're not tempted to overfish.
UNIDENTIFIED MALE: Now on a typical day, I throw 10 to 20 times as many back overboard as I keep. And I think that's a very good thing because
every time we're doing that, we know there's something the next time. We built a buffer in to our fishery to accommodate changes in the environment.
SEBASTIAN (voice-over): From the lobstermen to the restaurants that sell their catches, this is an economic success story.
Gamilo's (ph) Restaurant is an institution here in Portland, Maine. At peak season, they sell more than 200 of these every day. For $55 each for
the largest, daily revenues can run into the thousands.
It's a simple business model for a rather complicated eating experience.
UNIDENTIFIED MALE: What we got here is a bowl for your shells.
SEBASTIAN: OK.
SEBASTIAN (voice-over): Luckily I'm getting a crash course.
SEBASTIAN: I've got my bib.
UNIDENTIFIED MALE: You have got your bib on.
(CROSSTALK)
UNIDENTIFIED MALE: And from the body with the tail, I like to give it a little twist. And it will come right apart like so.
SEBASTIAN: And what's the trick to this?
Is it you have to be patient? You don't want to break it -- ?
UNIDENTIFIED MALE: A little bit. You know, some people like to just take a fork and a knife and open it right up, eat it piece by piece. I prefer
to see the entire tail.
SEBASTIAN (voice-over): The trick, of course, is to get your hands dirty.
SEBASTIAN: I'm already covered.
(LAUGHTER)
UNIDENTIFIED MALE: Part of the Maine lobster experience is opening one up yourself.
SEBASTIAN: Right.
Ah, victory.
UNIDENTIFIED MALE: Perfect.
SEBASTIAN (voice-over): Victory indeed for the first-time diner and a real Maine experience to remember.
For those working the lobster boats off of Portland, hoping for another banner year, thoughts have already turned to the next catch -- Clare
Sebastian, CNN in Portland, Maine.
(END VIDEOTAPE)
NEWTON: Not bad, Clare. Next time, we'll take you to Prince Edward Island and you're going to roll up your sleeves before you destroy that lobster.
Thanks for that. Our Clare Sebastian.
A massive chemical merger is being cooked up right now. We'll take a look at what could come from a combination of Dow Chemical and DuPont.
(COMMERCIAL REAK)
[16:30:45] NEWTON: Hello, I'M Paula Newton. Coming up in the next half hour of QUEST MEANS BUSINESS, Richard gives us a guided tour of one of the
most magical sites in the world - Machu Picchu. And one little piece of text message grammar could be ruining your
credibility and apparently I have none because I do it all the time. I'll tell you what that's all about a little later. But before that, these
are the top headlines we're following for you this hour. French officials say Foued Mohamed-Aggad was the third attacker at the Bataclan in Paris in November. He was a 23-year-old from a small town near
Strausberg. Now, a lawyer for his brother told (ph) once said he wanted to become a
suicide bomber when he was in Syria in 2013 but his family said they never believed he would return to France.
U.S. officials tell CNN the neighbor who gave Sayed Farook two assault rifles used in last week's attack in California is the accomplice who
helped him in another attack back in 2012. The FBI says the husband and wife behind the San Bernardino terror attack had been radicalized before they met.
FBI director James Comey says Farook and Tashfeen Malik were inspired by foreign terrorist organizations before they started online dating in 2013.
Pentagon chief Ashton Carter has opened the door to possible American ground support for Iraqi forces.
Now, the U.S. defense secretary was testifying at an ISIS strategy hearing on Capitol Hill and said military advisors could help the Iraqi army retake
the town of Ramadi from ISIS.
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ASHTON CARTER, U.S. DEFENSE SECRETARY: The reality is we're at war. That's how our troops feel about it.
The defense of the homeland must be strengthened to be sure, but it is absolutely necessary to defeat ISIL and its parent tumor in Syria and Iraq.
(END VIDEOCLIP)
NEWTON: Israeli Prime Minister Benjamin Netanyahu has condemned Donald Trump's proposal to ban all Muslims from entering the United States.
The Republican presidential candidate will meet Mr. Netanyahu later this month at a previously-scheduled event. He has been widely criticized for
his statement including by members of his own party. Trump has refused to rule out running as a third-party candidate in 2016. In an interview with the U.S. network ABC he said he could run as an
independent if he didn't get what he called "fair treatment" from his fellow Republicans.
(BEGIN VIDEOCLIP)
MICHAEL STRAHAN, CO-HOST, "LIVE! WITH KELLY AND MICHAEL" SHOW: With that being said, would you consider a run as a third-party candidate?
DONALD TRUMP, Well let me tell you. First of all, I don't want do that. I'm leading in the polls by not a little bit like by 20 and 21 points. I
mean, the people, the Republican party has been - the people have been phenomenal.
The party, I'll let you know about that. And if I don't get treated fairly, I would certainly consider that.
(END VIDEOCLIP)
NEWTON: Hundreds of protesters have gathered in Chicago to call for the resignation of the city's mayor. Rahm Emmanuel had earlier apologized for
the handling of the death of a black teenager at the hands of police. Laquan McDonald was shot dead by an officer in October of last year. Jason Van Dyke was not charged with his murder for another 13 months.
Big business story today. Shares of Dow Chemical and DuPont both closed up about 11 percent this Wednesday. And that's following reports the two
companies are considering a mega merger. And it would be staggering. We want to give you a little bit of a lesson
on these two though. Both go way back in American history. DuPont founded by the great E.I. DuPont is actually one of the oldest businesses in the United States.
Dow, founded by Herbert Henry Dow also dates back to the 19th century and is one of the world's largest chemical companies.
Now, it has attracted its fair share of controversy. For example, it created mustard gas which was used as a weapon during World War I.
Now the two companies are reportedly considering a merger -- a synthesis if you will. The new business will eventually split though into three
separate elements. My children would appreciate this science lesson. If we add the value of
Dow to DuPont, the total sum is $120 billion. [16:35:09] As always, CNN Money's Paul La Monica is here to try and get us through this merger.
Now, before we deal with what this all entails, let me get this straight. They're going to merge so that they can separate into three separate
entities.
PAUL LA MONICA, CNN MONEY DIGITAL CORRESPONDENT: This seems to be a new trend with these big corporate mergers because Pfizer and Allergan, the two
big drug companies that are planning to merge, they also apparently want to one day break up into separate companies as well.
So it seems that mega mergers now are being driven by desire by two companies to get bigger, focus and then split up again and hopefully and
we'll see whether or not that's something that Wall Street likes and there might be more deals like that going forward.
But it does seem a bit odd on the surface.
NEWTON: What is it about these two companies that they decided the only way they could unlock competitive and shareholder value was to really start
these colossal mergers?
LA MONICA: Yes, it is a bit of a mystery. Both Dow and DuPont as you've already mentioned these are two iconic American names in the chemical
business. I'm guessing that, you know, Wall Street clearly has gravitated more towards somewhat sexier growth companies and neither of these two are in
that realm. So maybe you will see more old industrial companies realizing that it's better to bulk with someone else and then find ways to then slim down after
already having done a big merger.
NEWTON: Now certainly layoffs is one of the things that comes to mind here, right?
LA MONICA: Yes.
NEWTON: -- I mean, with that kind of scale they will find deficiencies (ph).
LA MONICA: It would be I think impossible for these companies to do a deal of this size and then not announce a wave of job cuts. It's unfortunate,
but that's probably going to happen if this deal does go through as expected.
NEWTON: Some of these issues in these mergers, two things come up. One is the regulatory environment and the other is the tax implications.
Is there any evidence here that really this is what they're getting at?
LA MONICA: I don't think there's probably going to be any major regulator concerns that would be a block of the - this -- deal.
You have had regulators every now and then show a little bit more teeth and enforcing some deals but this is probably not one that would get any
serious review although of course any time you have companies this large, there could be other asset sales that have to take place just because
they're, you know, this is such a huge, gigantic deal.
NEWTON: And likely as you said splitting up into three, tax implications there probably make - unlock -- what they think is some shareholder value.
Paul, thanks so much -
LA MONICA: Thank you.
NEWTON: This story we'll continue to follow. After the break, the history and the mystery of Peru's most famous destination.
(COMMERCIAL BREAK)
[16:40:15] NEWTON: Machu Picchu is one of the most famous views in the world. And in this week's "Business Traveller," Richard explains it's not
just about the destination itself. The beauty begins in the journey to get there.
(BEGIN VIDEOCLIP)
RICHARD QUEST, CNN INTERNATIONAL ANCHOR AND REPORTER HOST OF "QUEST MEANS BUSINESS" SHOW: It takes three hours. In the aptly-named Vistadome train
carries me across roaring rivers, soaring Andes and exquisite farmland. With over a million visitors a year, Machu Picchu, Peru's number one
tourist destination. It's a real mish-mash of people - young backpackers and the older - come to
see the world.
UNIDENTIFIED FEMALE: Have a nice day.
QUEST: Step off the train and it's through the small town of Aguas Calientes before a bus trip to the top that's not for the faint-hearted.
But what a reward when you get there. The famous view, the site you've come to see.
Machu Picchu is believed to have been a sacred religious site built for the Incan Emperor Pachacuti around 1450, although nobody's completely sure.
Details here remain a mystery. The Incas themselves were a small Indian tribe before growing to control the largest empire ever seen in the
Americas. The story goes Machu Picchu was largely lost to time until it was rediscovered hidden and overgrown in 1911 by Hiram Bingham.
It was just literally here.
WAGNER CANOS (ph), MACHU PICCHU TOUR GUIDE: Some local farmers that used to live down at the bottom already knew about Machu Picchu.
They just been found Machu Picchu some years before Hiram Bingham came up here.
QUEST: What they saw amazed them. More than 30,000 hectares of temples, houses, agricultural land where a thousand Incan people once lived.
Today they may be replaced with hordes of selfie-taking tourists. You can smell the history.
Having seen the view of Machu Picchu from the top, now it's time to actually enter the Incan town at the end of the official Inca trail.
This is what was the gateway to Machu Picchu. Machu Picchu is roughly divided into two sections - the upper and the
lower, urban and agricultural. And here there are two must-visit spots. The first is the heart of Mach
Picchu's religious life.
CANOS (ph): That's the Sun Temple. The Sun Temple represents to the fire element and the Soil Temple represents to this earth element.
QUEST: For visitors it also means a lot of walking up and down, back to front and then `round again.
A few more steps and you reach the Sacred Plaza. So this is very much a central part of the - of Machu Picchu?
CANOS (ph): Practically we can say that's the central part of Machu Picchu. One of the most important is spots in here.
QUEST: It's a square surrounded by three more temples where the crowds gathered celebrations and festivities. And practiced the sciences the
Incas were so famous for, especially astronomy. Tell me what this was?
CANOS (ph): OK, this is stone which is a natural rock replaces the Southern Cross Constellation which is in that direction. Visible three
months a year only. Not a whole year round like in Oshal (ph) in New Zealand. In here, three
months a year only.
QUEST: So travelers coming here would be able to use this rock as a compass.
The complexity of this place is breathtaking. From this point in the religious section, looking down to the valleys and across into the Andes
one starts to see what an achievement it was to just build Machu Picchu. The stonework so precise, even ordinary buildings contain masterful construction. And here it stands, almost 600 years later, and think on.
This may not be the only one.
[16:45:01] CANOS (ph): The archeologists are still digging. It's blowing around this background menteen(ph). So predicting that Incan people trying
to make some more Inca towns perhaps quite similar to Machu Picchu.
QUEST: Look around. Everybody's wondering is there another Machu Picchu just out there?
(END VIDEOCLIP)
NEWTON: Looks absolutely gorgeous. Now, grammar purists aren't going to like this. Not at all. I don't like it.
A new study says certain punctuation is rude and shouldn't be used when texting. We'll have that for you in a moment.
But first a highlight from "Make, Create, Innovate."
(COMMERCIAL BREAK)
NEWTON: When it comes to sending text messages, every character counts, right? And according to a new study, some characters count, well, much
more than others. I want you to take this text example. This is a familiar phrase to regular viewers of the program. It says right there "profitable hours."
But according to a new study, there's a big difference between texting someone like this and texting someone this. I think you've spotted the
difference there. Come on, you had to spot the different - it' the full stop or period.
Listen, there's a big debate about whether or not it's a full stop or a period - I'm going to use both words. And a new study says ending a
message with one is downright rude. Now, this is not going down well at all with grammar purists and we want to
bring a lead author of the study into this conversation. Celia Klin's an associate professor of psychology at Binghamton University in New York and she joins me now from there live via Skype.
In terms of -- first why did you decide to have this kind of study and did the results surprise you?
CELIA KLIN, BINGHAMTON UNIVERSITY: Well we were interested in how reading texts might be different from reading more traditional forms of language.
There's something unusual about texting in some ways because in some ways it's like a conversation - this rapid back and forth - tap tap (ph) is
conversational. On the other hand, it's written, people read it. So we thought there might be something different in terms of the ways people use cues like punctuation.
So that was our interest in the issue and it was - a lot of people were talking about the experience of reading a text and having the sense that
it's rude or someone's angry at them. And one of the things we thought to look at was the period because it's
very variable - some people use them, some people don't. And we were interested if it had any meaning or that was just random.
People didn't use them when they were in a hurry or if it actually carried some meaning.
So we thought we would take a look at that.
[16:50:06] NEWTON: You know, one thing in terms of the study, I noticed that the study was conducted on undergrads only, right? So you're talking
about kids - I'll call them kids - between 18 and 22. Have you seen any kind of a divide? Is that the issue though here - that the way the younger generation uses the punctuation is much different from
the way I might use it.
KLIN: Yes, it's an interesting question. A lot of people have asked that. You know, my guess - and this is just speculative - is it's not age as much
as it is frequency of texting. So I have sense - and this is, again, you know - it's my sense is that frequent texters have come up with really quick shortcuts, ways to convey
information that you just can't convey in written information whereas less frequent texters which might be older people but it might not be - may not
be using those same kind of short cuts. But it's a question - is it an age issue, it's a frequency issue? And I think that'd be an interesting study to look at.
NEWTON: Well, Professor Klin, I know you can't see me but I am right now scrolling through my text messages from - a long line of them from my 14-
year-old daughter - and it confirm there is not any punctuation in her texts to me whatsoever.
And what do you think I am in here? Take a guess as to not just full stop or periods. I got it all in there
(LAUGHTER).
Do you see this as an evolution? We are used to that language of texting. So, you know, you've got the lol and all that. But just so many different
shortcuts. I mean, sometimes I need translation for my daughter's texts. And do you see that actually changing language in general? Changing communication in general?
KLIN: I don't. I don't think that there's any reason to get worried about people not using punctuation in texting. In fact, I would say the
opposite. I think that I'm awed -
NEWTON: Wowed?
KLIN: -- by efficient we are as language users, how we're able to provide really nuance information and understand really small differences in
meaning. So my sense of it is that people are going to write their texts differently
than they write their papers differently than they write, you know, a letter to a friend.
So I think this is just an example of language changing and evolving and that we've found ways to convey information very quickly in a text message.
You know, it's my hope anyway that I don't see that in a paper I grade - a lack of punctuation.
(LAUGHTER)
NEWTON: That is certainly good news, I'm glad to hear that. There's hope for my daughter getting in a university apparently.
KLIN: (Inaudible) so, (inaudible) so.
NEWTON: Thank you Professor Klin, appreciate it. A fascinating study.
KLIN: You're welcome.
NEWTON: All right. Breaking a few online etiquette rules won't land you in any big trouble. There are others though who have no problem with
breaking into other people's computers in what they call hacktivism. CNN's Laurie Segall spoke to some of them in this secret world of superhero
hackers.
(BEGIN VIDEOCLIP)
LAURIE SEGALL, TECHNOLOGY CORRESPONDENT FOR CNN MONEY: Hamster, Egypt, Virus - no, not random words, they're actually code names for hackers I met
as they delve deeper into hacker culture. The farther you go, the weirder it gets. And here's what you begin to pick
up on. There's no one-size-fits-all definition of the word `hacker.' Everyone hacks for a different reason. Some hack for a cause - it's called
hacktivism. Here we have three hackers and three different stories. You might have already heard of Anonymous, a loosely-connected group of
hackers all over the world. Under the masks, varying ideas, countries, enemies.
Their targets range from government agencies to terrorist group ISIS. I spoke to a member. I knew he was legit based on conversations we've had
during prior attack.
ANONYMOUS MEMBER HACKER: Basically Anonymous, a legion of people who wants freedom.
SEGALL: What do you say to say to the folks who say Anonymous breaks the law?
ANONYMOUS MEMBER HACKER: If freedom is breaking the law, there is something wrong with the law.
SEGALL: In the hacking community, people play by their own rules like this guy. He'll hack your website if he doesn't like what you stand for.
One example, a Nazi sympathizer forum. I was connected to him by a respected security consultant.
MALE HACKER: We had a vulnerability, or well an exploit at that time that allowed us to gain privileges to compromise the whole account.
Find out where they were holding the meetings. Call people in on the meetings or like call the cops on the meetings and things like that.
Just trying to cause as much disruption and chaos as possible.
SEGALL: While he says he's hacking for justice, he also might be helping people steal your credit card.
You make money, you write software to find security flaws and then sells those flaws online.
MALE HACKER: I don't really ask questions about what they do with it. You know, they could be using it for horrible purposes or they could be using
it for good purposes.
SEGALL: He says he got into this after he became unpopular with a community of good hackers.
MALE HACKER: It's come to a point where I had to make - I had to make some choices. Continue to do what I do or just live on the streets I
guess.
SEGALL: And then there are those who use hacktivism to protect. Morgan isn't hiding behind a mask or a phone line but that doesn't mean his work isn't risky.
MORGAN MARQUIS-BOIRE, HACKER: I've analyzed hard drives that revealed that - you know, the people working in Syria, aid workers, had actually been
compromised by pro-state actors that cinch (ph) out these e-mails that contained malicious documents.
Then the malicious document purported to be a list of Syrian opposition insurgents.
[16:55:06] You receive this list and you want to open it to see if you're on it. Like wildfire everyone is opening these malicious documents which
cause - you know - the implantation of spyware on their computers.
SEGALL: You've helped uncover digital spying in China, Syria, Morocco.
MALE HACKER: Thus coming out here for this interview with you. You know, I joke that far too many people made for my comfort - they're like - some
are actually going to turn out to be one of the groups of people that you pissed off and they're going to bury you in the desert.
SEGALL: For Morgan, this isn't his day job. But he says he has a responsibility
MARQUIS-BOIRE: I think I have a fairly fundamental belief in the value of privacy and free expression as human rights.
(END VIDEOCLIP)
NEWTON: And we'll back with more QUEST MEANS BUSINESS in just a moment.
(COMMERCIAL BREAK)
NEWTON: The Duke and Duchess of Cambridge have taken to the trading floor in London. Now, Prince William and his wife Catherine joined more
experienced brokers who wore some rather - yes - unusual outfits. It was all part of a fundraising event and all the commissions and revenue
will go to a charity. Now, it doesn't look like the Duke and Duchess moved the markets all that much although some of the real life traders unfortunately lost some money.
In Frankfurt, the DAX closed lower despite shares in Volkswagen jumping more than 6 percent. VW cut the number of cars hit by a CO2 emissions
scandal to just 38,000, much lower than original estimates. And we'll get an update on other much larger emissions scandal testing from Volkswagen on Thursday.
As for U.S. stocks, they closed as you can see there in the red. Taking a look at the Dow which finished the day lower reversing gains earlier in the
session and that's despite shares in Dow Chemical and DuPont climbing as we said more than 11 percent.
And that is QUEST MEANS BUSINESS. I'm Paula Newton. Richard Quest will be back here tomorrow. The news continues here on CNN.
END
