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Quest Means Business
Bill Cosby Arraigned in Pennsylvania; IMF Warns Disappointing Year Ahead; Europe Cancels New Year's Eve Celebrations; NYC Hotels Join Carbon Challenge; Swapping Servers for Smartphones; Who Pays Insurance Bill in Aftermath of Storm Damage?; New Year's Eve in Times Square; Putin's 2016 Gift
Aired December 30, 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]
RICHARD QUEST, CNN HOST: -- 1921 promoting women in finance and in the financial industry ringing the closing bell. Come on, oh, oh dear, bleed,
learn, return, I think we can definitely declare that a wimpy gavel to end trading on Wednesday. It is December the 30th.
(BEGIN VIDEO CLIP)
QUEST: Tonight, Christine LaGarde says a year of disappointment awaits as the MD warns the outlook is grim.
Europe's capital cancels New Year's Eve celebrations over fears of terrorist attacks in Brussels. And New York Hotels signed up to go green.
We'll have the head of the Waldorf Astoria to tell us what that means for clean sheets.
(END VIDEO CLIP)
QUEST: I'm Richard Quest, the last QUEST MEANS BUSINESS of 2015 and of course I mean business.
(MUSIC PLAYING)
QUEST: Good evening. We'll have the day's business news for you in just a moment. But we start tonight with one of America's most famous and once
most beloved entertainers who has now been charged with aggravated indecent assault.
(BEGIN VIDEO CLIP)
QUEST: He's Bill Cosby and he was arraigned in a Pennsylvania court earlier. This was the mug shot released a few moments ago. Bail was set at
$1 million. These are the first criminal charges levied against Cosby. Here he is arriving at court. Since more than 50 women accused the comedian of
assaulting them after having drugged them in many occasions.
(END VIDEO CLIP)
QUEST: Cosby has continuously and steadfastly denied any wrongdoing.
CNN's legal analyst, Joey Jackson is with me now to put some perspective.
JOEY JACKSON, CNN LEGAL ANALYST: Good to see you as always.
QUEST: Good to see you sir. Now this is fascinating isn't it because the charges really came out of nowhere. All of a sudden we were told there were
going to be charges. And all of a sudden he is in court. But this, how much of this is the first and there'll be more to follow do you think?
JACKSON: All right. So taking it back. What happens is, a lot of this is politics just by brief way of history.
(BEGIN VIDEO CLIP)
JACKSON: Back in 2004 apparently this allegedly occurred. With this the interaction between him and Andrea Constand, the accuser. At that time it
was brought to the District Attorney, not immediately, she waited about a year, went back to Canada, her mom noticed she was acting a little
differently, having some nightmares, said, what's the matter? They went to Canadian authorities. Canadian authorities investigated. They then
transferred the case back to Pennsylvania.
(END VIDEO CLIP)
JACKSON: The DA at that time, 2005, looked at it and said, insufficient evidence at this time to move forward. Fast forwarding, there's an
election. That D.A. at that time is now in a fight against the current D.A. who announced the charges, named Steele. A big part of that political
debate was why didn't you charge Cosby?
(BEGIN VIDEO CLIP)
JACKSON: There was sufficient evidence to charge Cosby, you weren't (inaudible) in your duty by not charging Cosby. So this new D.A. not only
had the past investigation that was done by Canadian authorities to Pennsylvania authorities.
(END VIDEO CLIP)
JACKSON: But also had a deposition a civil deposition, why? Because his accuser sued him in civil court, which relates to money damages and as a
result of that civil deposition, Cosby had to swear under oath, how do you know Constand? When did you see her? When were you with her? What were you
doing with her? And he made critical admissions in that deposition that are coming up to be used against him now.
QUEST: So the women involved in all these case, there are dozens of them, and there is now one case that has managed to get into the court. And he's
obviously going to have to face a jury of his peers in the fullness of time.
JACKSON: That's right.
QUEST: How many of the other cases are likely? Are we going to spot D.As and U.S. attorneys all over the United States trying to now bring their own
or will they be amalgamed into one?
JACKSON: Richard, I don't think so and here's why. A lot of those other cases, there are statute of limitations problems, what is that? In order
to bring forward a criminal case you have to do it within an applicable time frame.
(BEGIN VIDEO CLIP)
JACKSON: Why? Because people get stale, the evidence gets stale, witnesses move, you know and you need a certain statute of limitations to get
(inaudible). In those other cases statute of limitation has run. In this particular case the statute of limitation would be running in the next
couple of days so the District Attorney had to move quickly in order to prosecute this case.
Now, when you asked about these other women, how will they play into this case? It's very possible that the prosecutor may want those other women to
testify in this particular case.
(END VIDEO CLIP)
QUEST: This is in the state court, it's not in the federal court.
JACKSON: No, it isn't.
QUEST: I think you know one can sort of safely say without too much contradiction that federal courts do tend to have a greater level of
decorum about them when these major cases happen?
JACKSON: Definitely true.
QUEST: Oh, you agree with me?
JACKSON: Yes.
QUEST: So how in the state court with maybe an elected judge, how are they going to prevent this turning into O.J. Simpson, Michael Jackson, another
celebrity circus?
[16:05:14]
JACKSON: Well here's the first way; there are no cameras allowed into the courtroom in that jurisdiction? Does it mean they won't be tweeting? Of
course not. Does it mean that reporters won't be in there hanging on every word let us know specifically what's happening? Of course not.
(BEGIN VIDEO CLIP)
JACKSON: That's going to happen. Because as an initial matter, because there are no cameras in that courtroom, we are not Richard going to be able
to hang on every single word.
(END VIDEO CLIP)
QUEST: You think it will turn into a media circus, anyway don't you?
JACKSON: I definitely do. It's a big case, this is Cosby, he's 78. He could be, at the time he's 88, that's a ten-year sentence, it could be a life
sentence.
QUEST: Sir, thank you for coming on and talking about it.
JACKSON: I'm appreciative. Thank you.
QUEST: You'll be back here again before long.
JACKSON: I look forward to it.
QUEST: Right. Now as we continue, as the clock ticks down in 2016, the managing director of the International Monetary Fund is now warning a year
of disappointment may be ahead.
Join me at the super screens and you'll see we have both the digital but as always, we like the real thing now.
Christine LaGarde is peering into the IMF crystal ball and unfortunately here, we have to go digital. Because what she is seeing is a spillover
effects from rising interest rates by the Federal Reserve. And she's urging other countries like the United Kingdom that may also be raising interest
rates to think about economies less able to absorb shocks.
She says, of course, that borrowing costs will go up, which will expose emerging market weaknesses and another warning, taking into account slow
growing China. It all means it has deteriorated to what she describes as disappointing and uneven growth next year.
With her own crystal ball in London is Vicky Pryce, Chief Economic Advisor for the Center for Economic and Business Research.
When I heard Christine LaGarde's comments about disappointing growth, I was sort of tempted to say, well, tell me something I don't know. I mean nobody
is expecting next year to be a barn burner. I guess the question, Vicki, is how bad do you think it's going to be?
VICKY PRYCE, CHIEF ECONOMIST ADVISOR, CENTER FOR ECONOMIC AND BUSINESS RESEARCH: Well, that's a really interesting question. I wish everyone, you
know, knew the answer to that. But in reality, I think what has been going on is that since the IMF had already downgraded i's forecast for 2016 back
in October. We've had the rise in interest rates in the U.S., which you know had been forecast up to a point but the impacts of those interest rate
increases, or that first interest rate increase, and whatever may happen next has simply not been calculated properly in any forecast.
People just thought, well, it's going to happen. Let's wait and see what is going to be the case after that. They thought the market had already
possibly priced that in. So but in reality, they haven't. I think there is huge uncertainty as to what the impact of that is going to be particularly
on emerging markets. And I think that's what she is trying to say, caution basically for 2016. We knew it but the extent of it we don't.
QUEST: The U.S. is still going to be growing, I think the Fed's phase now is modestly or moderately. Europe still poses problems. As the QE as
Draghi's QE goes ever longer and ever deeper, is this the year that Europe starts to play its role in global growth?
PRYCE: Well, Europe is forecast to grow by less than 2% again next year. This is hardly going to be earth shattering. The reality is we are still
going to be looking unfortunately at what is happening in the emerging market. It's what goes on China that really is important. What happens in
Russia and Brazil? What happens also in countries that are directly affected by selling to or not selling as the case would be to China, such
as those in Southeast Asia and elsewhere in the region. Japan which is really facing another year of very, very slow growth in 2016. Those
countries matter. I think Europe is going to disappoint yet again and that is why Draghi, the head of the Central Bank, The European Central Bank is
going to have to do even more to at least ensure that we don't fall back into deflation and possibly even slower growth than we've seen in 2015.
QUEST: Okay. Finally, I assume you believe Bank of England raises interest rate in the U.K. It's really a question of first quarter, second or third.
Which do you think it's going to be?
PRYCE: Third at the earliest, I don't think there is any appetite to do anything at all. I think actually there is concern that interest rates in
the U.S. have gone up when inflation if anything is going even further down. And what, of course is going on here in the U.K., is that we
absolutely no sign of any acceleration in inflation at all.
Wage growth is really almost non-existent and, therefore, I think there is absolutely no reason why interest rates should go up at all in 2016. I
would rather not see them go up but they might towards the end of the year.
[16:10:12]
QUEST: Vicki, have a lovely, happy new year. We thank you, as we do to all our guests who are so generous with their time coming on the program and we
look forward to having you with us in 2016.
PRYCE: Happy New Year to you too.
QUEST: And to you.
Now back to my crystal ball. The markets.
(BEGIN VIDEO CLIP)
QUEST: The markets, oh, there they are. The markets, the small oil rebound that's been pushing Wall Street higher fizzled out on Wednesday. I wish I
could have seen that happening over 24 hours ago.
The Dow Jones finished down 117 points. Interestingly, because when you and I were here yesterday, I was talking about how we'd seen so many triple
digit raises, gains on the Dow, and now we see in the opposite direction. And that loss looks like it's almost the worst of the session.
Brent and WTI, both crudes were down more than 3%, heading back towards those 11-year lows. Energy stocks were the biggest losers. Overall, as we
come to the end of the year the Dow seems now to be down nearly 1% for the year overall.
The major European markets also fell on Wednesday, take a look at the numbers. You can see them for yourselves. All down with the worse losses
in Xetra Dax in Frankfurt. The FTSE was further down for the first time in four sessions. For the year the FTSE is down 4.5%, one day of trading
remains.
I promise you of one thing you can be sure, it is highly unlikely that it will make up that 4.5% in the course of one day's trading. If it does I'll
buy a round of drinks.
(END VIDEO CLIP)
QUEST: Around the world authorities on edge for New Years' Eve.
(BEGIN VIDEO CLIP)
QUEST: We'll go live to Brussels where the Mayor has taken drastic action amid terror threats. Its QUEST MEANS BUSINESS.
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(END VIDEO CLIP)
(COMMERCIAL BREAK)
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QUEST: The mayor of Brussels has cancelled the city's New Year's Eve fireworks for fear of terrorist attacks. Across the world there are
heightened alerts after multiple threats against celebrations ringing in the New Year.
(BEGIN VIDEO CLIP)
QUEST: In Belgium, the fireworks were cancelled after two people were arrested on suspicion of plotting attacks on emblematic sites.
In Turkey, two people have been arrested on planning an attack in Ankara. The pair allegedly had ties to ISIS and were found with explosives ready to
use.
[16:15:06]
QUEST: And Federal authorities in the U.S. are investigating threats in Los Angeles, Washington, and New York. A million people will gather in Time's
Square on News Year Eve.
The Police Commissioner in New York says he's ramping up security but he still believes there's no credible threat to the festivities.
Our international diplomatic editor, Nic Robertson, is in the European capital, he's in Brussels,
(END VIDEO CLIP)
QUEST: Good evening to you Nic, a chilly evening for you there. But Nic, look, it smacks. It smacks of I hesitate to use the word panic or knee-
jerk reaction, to cancel the fireworks. I know there's a security threat. But it's a bit dramatic, isn't it?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: You know, a lot of people might be saying that and feeling that, and certainly the residents
of this city and this country will be feeling they are missing out on something that's become a
real tradition for them.
(BEGIN VIDEO CLIP)
ROBERTSON: But I met this afternoon with the man who advises the governor minsters. He's the head of a committee that advises the Mayor, advises
other government officials on the current state of a threat.
He was a man responsible for giving advice when the threat level was raised up to the level four, the city center here essentuially closed down not
long after the Paris attacks. He was the most cautious I've seen a counterterrorism official in years. He refused to be drawn when I asked him
what was his advice going to be to those officials a few hours after I was meeting him.
(END VIDEO CLIP)
ROBERTSON: -- what advice he would be giving them. Refused to be drawn. What we've heard from the Mayor now is the Mayor has said that he - that
security for people is the most important thing for him, it's a priority, and with so many people coming into the City Center to see the fireworks,
he cannot guarantee their security.
The Prime Minister says he backs him up, The Prime Minister goes further and says that the terrorists right now are more prudent, are more
professional than they have been in the past. That the current situation is uncertain with new information coming in hour by hour.
(BEGIN VIDEO CLIP)
ROBERTSON: He says that Europe faces a new stage in history. The European Nations should be doing more to combat terrorism. This is the Prime
Minister of this country. He backs the mayor's decision to can sell the fireworks. That is the level of concern.
(END VIDEO CLIP)
QUEST: Nic, I realize my next question is, inflammatory, bordering on controversial. But when I hear your answer, and I hear that the mayor is
cancelling the fireworks, it leads one to sort of say, well, the terrorists are winning. We are changing our way of life. And they have clearly getting
the upper hand when you have to cancel one of the city's major celebrations. .
ROBERTSON: You know, I always exchange messages a few minutes ago with a former jihadist who turned spy for U.S. Intelligence agencies, he said he
was on some very dangerous missions in the middle east, that his work is believed to have brought down some senior terrorist figures. He says, his
opinion is, that this does amount to that. This does amount to a defeat of the terrorists by their terms, when the mayor is certainly aware of that.
It's a very difficult decision right now. Those two arrests earlier in the week speak volumes to the concerns in the run-up here to the new year's eve
celebrations, right here.
This is the square, by the way, where there are two men arrested earlier in the week, planning part of their attacks in the square, where there would
be revelers out tomorrow evening. There still will be. There perhaps just won't be so many of them.
So there certainly are a lot of people that feel the same way that you describe. This is giving into terrorists. The reality of the situation is
that the people here, the officials, the city officials who are responsible for the safety and security of citizens do not want to run that risk this
year.
Obviously, they hope it will be better next year. But they don't want to take that risk and that is a new reality. And that's where I think the
Prime Minister's words are so strong. Europe and Europe's leaders need to do more, need to work together in a more coordinated fashion.
QUEST: Nick, in Le Grand Plas in Brussels, one of my favorite places to be. Nick, thank you, thank you for that. .
And of course, just to sort of post-script what my question to Nic there of course, "i don't have the responsibility of deciding on the safety and
security of hundreds and thousands of people. So perhaps it's not such an unfair - it's an unfair question after all to put it in these terms.
After the break, hotels, particularly the five star ones, lavish you with towels, with sheets, with all sorts of victim luxury. And now here in New
York, they're going to go green. Does that mean no more thousand pledges?
(MUSIC PLAYING)
(END VIDEO CLIP)
(COMMERCIAL BREAK)
(MUSIC PLAYING)
QUEST: I'll do the rooms. Only 25 or 30 still to do. Think of it as housekeeping for the environment. 16 New York hotels have joined the city's
carbon challenge that aims to reduce greenhouse gas emissions by up to 30% over the next decade. It will be everything you can possibly think of. The
city says the hotel's efforts could cut 32,000 metric tons of emissions.
Now some of those that are involved include the Crown Plaza in Time's Square. You've got the Hudson Hotel, which is just across the street from
where we are here. And of course the Waldorf-Astoria. What does it all mean putting it together? What are you actually doing? Well we need to actually
take the cleaning trolley and ask the man, himself. The managing director of the Waldorf-Astoria is with me. Good to see you, sir.
MICHAEL HOFFMAN, MANAGING DIRECTOR WALDORF-ASTORIA: Good to see you.
QUEST: Michael Hoffman.
HOFFMAN: Thank you for having us.
QUEST: This sounds like a very nice idea. But what does it actually mean? What will you be doing? Give me an exam of what it means for you at the
Waldorf?
HOFFMAN: Well we've had a tradition at the Waldorf of being on the forefront of environmental efforts. And part of what we do is everything
from waste reduction to energy management. In my office, for instance, the ten light bulbs that we have today are equivalent to one light bulb that
used to be plugged in. Because we've gone to led light sources and things of that nature.
QUEST: Every time, though, I always hear about, particularly four and five star hotels doing environmental good or cutting emissions or waste. You
have a balancing act because you still want to be offering the five star luxury treatment that your guests pay for. And that often makes it a little
uncomfortable and difficult.
HOFFMAN: There is a - there's a fine balance that needs to be found? But I think that the more and more we think about it, we have a responsibility
towards the next generation. And even people that travel in five luxury hotels expect that we as members of the community participate in a program
like this.
QUEST: It's more that - but this sort of idea about cutting carbon emissions in New York. How will you now take it up a step? What will you be
doing to advance the existing programs and plans that you already got?
HOFFMAN: We have a sustainability issue within the hotel that works on all different fronts, be it energy savings, be it efficiency, how can we reduce
our consumption in gas, water? Some of it's very simple. If the 1,500 employees that work in the hotel are all focused on a common goal, and we
can get engagement on all fronts, we can make a huge dent on the energy that we consume within the hotel and the impact that it has within the
city.
[16:25:10]
QUEST: And this sustainability is obviously you have to rope in the guest as well. The guest has to be involved in it as well?
HOFFMAN: I think in a five star environment you have to give the guest a choice.
QUEST: No, see I don't necessarily agree with you on that. I think that's where the plan falls apart. You basic, it's what your default position is.
If your default position is, we won't change the sheets unless you ask us. That's one thing versus we will change the sheets unless you tell us not
to.
HOFFMAN: I think that's where you find the balance. You have to, what is the right approach for your customer, and depending on the hotel you are in
there is a different approach to take. I think in a five star environment, you have to give the guest the option.
You would be surprised to see how many customers actually do take us up on our offer to not change the sheets or to give them the option when to
change them.
QUEST: Finally, in a word, as the Managing Director, is this something of which you are responsible and is answerable to you?
HOFFMAN: Oh absolutely. I'm a part of the committee that runs sustainability within the hotel, we meet once a month and we have very
defined action plans that are goal oriented for each quarter.
QUEST: I look forward to seeing you in your magnificent, one of the best hotels, lovely. Thank you.
HOFFMAN: Thank you very much. Appreciate the time.
QUEST: Now, in Beijing, restaurants are cutting out the middleman between you and your people. Instead, it's swapping servers for smartphones.
CNN's Asia Pacific Editor is Andrew Stevens, and he's been to - with a smartphone to try it out.
(BEGIN VIDEO CLIP)
ANDREW STEVENS, CNN ASIA PACIFIC EDITOR: It's lunchtime in Beijing, and here across the country, workers are joining their friends and colleagues
for a bite to eat.
Well we've found a restaurant that's offering something slightly different in the dining experience. It's linking mobile technology with the city's
big love of food.
Welcome to (Renren Chien) and the first thing you will notice about this restaurant is there is no waiters. They've been replaced with an app. But
it's not just any app.
I'm now on WeChat, my popular messaging app in China. When I say popular we're talking hundreds of millions of people on this. So I've got the menu
up. I've got seven choices, I'm going for the spicy beef rice noodles. It's telling me I'm getting a bit of a discount. So all together that is about
$5. It's now given me a number, which will be called out on the speakers in just a few minutes and that will be my dish.
One place there are staff, the kitchen, a team of chefs turning digital orders into your lunch.
Ok. Here we are. It's been about five minutes. And there's the Beef with spicy noodles. All through the power of the smartphone and a helping hand
from the kitchen. But the restaurant owner is looking at cutting his overhead even more.
LIU ZHENG, FOUNDER: There will be (inaudible) in this restaurant. That is no waitress, no cashier, no merchandisers, and no chef. I did this because
I'm following the technology development trend in China.
STEVENS: In an age where smartphones are signaling the end of face-to-face conversation around the dining table. Why not take it one step further and
take out the need to speak to a waiter too.
Andrew Stevens, CNN, Beijing.
(END VIDEO CLIP)
QUEST: Well I guess Andrew Stevens would find a story that involved him eating at somebody else's expense. Coming back after the break, wild
weather continues to torment parts of the United States.
(BEGIN VIDEO CLIP)
QUEST: Flooding in Missouri is tipped to reach historic levels while Texas is dealing with the aftermath of tornadoes and (inaudible). We look at the
likely insurance bill, who is paying it? And are insurance companies going to live up to their promises or will they weasel out of every last penny?
Coming up next.
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(END VIDEO CLIP)
(COMMERCIAL BREAK)
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[16:32:23]
QUEST: Hello, I'm Richard Quest there is of course more QUEST MEANS BUSINESS in just a moment. When the cost of extreme weather in the United
states now reads over a billion, and that's in one state alone, who is paying that bill?
We go behind the scenes at the biggest party in the world. It's New Year's Eve in Times Square. Before all of that, this is CNN, and on this network,
the news always comes first.
(MUSIC PLAYING)
(HEADLINES)
(MUSIC PLAYING)
QUEST: There's been no letup in the extreme weather that's caused massive destruction across the United States.
(BEGIN VIDEO CLIP)
QUEST: 12 million people are under flood warnings, it's described as historic in Missouri. Rivers are rising from Illinois to Texas and it all
follows some areas that have been battered by tornadoes and other storms during the course of last week.
[16:35:10]
QUEST: Our Martin Savage is in Pacific in Missouri.
(END VIDEO CLIP)
QUEST: The pictures are heart breaking and the prospect, Martin, of more on the way.
MARTIN SAVIDGE, CNN CORRESPONDENT: Right. It's really quite remarkable, not only from the scope, the scale and of course the historic nature that you
point out. It's also the time of year.
(BEGIN VIDEO CLIP)
SAVIDGE: Flooding is not necessarily unusual in this part of the mid-west say in the springtime. Not New Year's Eve, practically. Take a look at
this. This is specific and you're looking at 1st street. And if you look down that street as far as you can see, there is nothing but water. A
community about 7,000 people. It isn't all under water. But a lot of it is and this is just one example of one community.
All across the state of Missouri, particularly in the St. Louis region, they are either under water or threatened to go under water. And it's not
just the Mississippi River, it's the Missouri River and in this case here it's the Merrimack River. There is the loss of life. So far, 13 people have
died. That's the official toll. There is the loss of property and then on top of that, the ongoing rescues that have to take place, the governor's
called out the national guard. That to help control traffic because so many hundreds of roads and bridges have either been cut off or inundated and
they're also patrolling the areas that have been evacuated. And there continue to be evacuations.
It is hoped that the waters will crest at least in this area either later today or tomorrow. But that remains to be seen. And it could even go over
the record of 1993, which used to be called the great flood. We'll have to wait and see how this one turns out, but regardless, it is both deadly,
costly and really strange to have almost on New Year's Eve. Bitter cold on top of that water Richard.
(END VIDEO CLIP)
QUEST: And I was much taken with what you just said. They hope that the, the river or the waters have crested. So there could be worse to come?
SAVIDGE: There could. What's unusual about this, is that usually when the flood waters comes through this country, it comes in the spring as a result
of the snow melt.
(BEGIN VIDEO CLIP)
SAVIDGE: That is something you can see that coming for days, sometimes weeks. This rain fell on this state last weekend. In some areas 30
centimeters of rain. That's actually a flash flood that triggered this. So the waters rose incredibly fast. It also means that they could go down
quickly but it all has to go somewhere. And that's further downstream to other communities, eventually all the way to the Gulf of Mexico.
(END VIDEO CLIP)
QUEST: Martin Savidge in Pacific in Missouri, thank you.
Now further south in Texas, insurers say the cost of this week's tornadoes and blizzards may be more than a billion dollars. Mark Hanna is a spokesman
for the Insurance Council of Texas.
Mark, thank you for joining us from Austin. In this scenario, obviously, you battle various forces, don't you? You've got to - you've got to find
out quickly how much needs to be done and then you got to get on with it and do it. What's your biggest challenge?
MARK HANNA, SPOKESMAN, INSURANCE COUNCIL TEXAS: Well, basically, touching base with the policyholders, because many of them have been knocked out of
their home. They've had to flee. They're seeking shelter elsewhere. They've gone to go with family or friends or in a hotel or motel.
(BEGIN VIDEO CLIP)
HANNA: And so we're trying to hook up the policyholder with the insurance company, the insurance adjuster so we can start the process of a whole
healing process of getting them back into their house.
QUEST: Now I know, obviously, I mean you don't - you've got no idea what the bill will be yet, the total bill. But I see the number of a billion
being bandied around. Do you expect it to go much more than that?
HANNA: Well, that's just the initial figure. We put that figure together yesterday. $1.2 billion.
That figure is going to stay in place for at least the next several days. But we continue to see more damage reports, more claims coming in. More
cars, more trucks, more homes, more businesses. But for right now, we're sticking with that number.
QUEST: Whenever I see these sort of pictures, and I hear insurance stories, I always think, you know who's covered for what? And well, how many of
these people are going to be discovered, that their insurance doesn't cover for the damage?
(END VIDEO CLIP)
QUEST: I guess the question is, in this scenario, how literal are the companies in adjudicating the claims?
HANNA: In the state of Texas, I'd like to say, we do a very good job. The Texas Department of Insurance regulates the insurance industry in the
state. And you can look at their homeowner complaints. If you have a problem with your insurance company not doing its job you turn to what's
called TDI and you file a complaint.
[16:40:11]
HANNA: Well looking at the last 10 years of complaints in the state of Texas, they're at a historic low. So I'd like to say that the insurance
industry in the state of Texas is doing a pretty remarkable job.
QUEST: The one thing - I mean and obviously, you are now talking to viewers around the world, a long way from your bailiwick of Texas. But the
one thing this does remind me, when I see it, and it doesn't matter whether it's floods in Texas, earthquakes in Asia, forest fires in Australia. It
always reminds me that everybody should at some point check their insurance policy just because you took it out 15 years ago and it renews
automatically. Doesn't mean you shouldn't have another look to make sure it's the right one?
HANNA: Richard, I totally agree. A lot of people just get their insurance bill once a month or once a year. They pay it and they don't want to talk
about it, they don't want to think about it. But it's always a good thing to look at your insurance bill, look at your insurance rates, make sure
that you are paying the right amount and ask a lot of what if questions. What if a tree falls on my house? What if my house is flooded with rising
waters from a nearby creek? Those things are the questions that you want to ask now rather than later.
QUEST: And of course, I am absolutely Mark, completely and totally guilty of everything we have just talked ability. Thank you for joining us sir, I
wish you well in your duties.
HANNA: Thank you, Richard.
QUEST: When we come back, it is the place to be in many cases. It is Time Square, when the ball drops on New Year's Eve, the world will be watching.
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QUEST: But what does that ball look like? We will show you. The ball, the mechanism, and the man responsible after the break.
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QUEST: Now, if you think about it logically, just think about this absolutely logically, you say to a million people, oh, by the way, all come
together, stand, look for about 20 or 30 blocks, watch a big ball that's lit up somewhere over there, run down a pole and get all excited.
Now, you'd hardly think that is going to turn people off. But a million people are expected to do exactly that when they crowd the few blocks
around Time's Square.
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[16:45:10]
QUEST: For those who would rather escape the mass of humanity the chain restaurants in the surrounding areas are doing their best and cashing in.
Olive Garden - Olive Garden is offering an entree usually costs around $20 bucks is now charging $400 for a five hour party and that doesn't guarantee
you get to see or even a good view at the famous ball drop.
Bubba Gump the shrimp and seafood chain that inspired the film Forest Gump is charging, ooh it seems to have gone a bit funny here, let's have a look.
Oh, for goodness sake, you get the idea. Everybody is charging a small fortune. Maybe if they paid enough money this thing would actually work.
There, Bubba Gump, $799 for its New Year's Eve bash. Bubba does promise a view of the ball drop and tickets sold out in just five days.
VIP appetizers at Ruby Tuesday's, something's gone strangely wrong with this, it's clearly been on the booze, it will cost you a lot of money. The
point is, everybody is watching this. I'm going to show you what that actually looks like close up.
A few floors below the Time's Square Ball, it's an unassuming room, but this is where the power that ushers in the New Year resides. And this is
the mechanism that starts the whole thing off.
Some great and good dignitary puts their hands on the ball and it all begins.
New York's New Year's Eve ball drop has been a celebrated tradition since 1907. The ball has been through many iterations and it's still considered
the universal symbol of the New Year across the world.
JEFF STRAUS, PRESIDENT COUNTDOWN ENTERTAINMENT LLC: Check it out. It looks great.
QUEST: Yes now that's - Jeff Straus is preparing for the biggest party of the year.
STRAUS: The time's square ball.
QUEST: The time's square ball.
He has the towering task of entertaining the masses on New Year's Eve. And that includes producing this massive geodesic sphere. So this is it. In
terms of New York traditions in the holiday season, they really don't come much bigger than this particular one. Tell me - tell me about it.
STRAUS: It all began as a maritime tradition, where they would lower ball at noon in parts around the world, so that navigators out at sea could
adjust their timepiece to local time. They combined that with the new technology the electric light bulb to create a lighted time ball that would
drop at midnight here in Times Square that's attracted hundreds of thousands of people from the very beginning.
QUEST: Tell me about the ball, itself.
STRAUS: This ball is 12ft in diameter, it weighs nearly 6 tons, it has over 32,000 Philips LEDs and over a ton of Waterford crystal triangles.
QUEST: Does it ever go a bit funny? In the sense of is it always on time. Is there an override in case it doesn't work? Has it ever not worked?
STRAUS: There has been a couple times. My very first year the ball was actually three second late.
QUEST: And now?
STRAUS: Now we are actually tied into GPS and we've got it perfectly set. We have been on time every year since.
QUEST: Is the person pushing the button doesn't push it or is late pushing it, does this thing start anyway? Does this thing automatically? This thing
is going to start one minute?
STRAUS: We learned our lesson. It's tied right in. 60 seconds, it starts lowering no matter whether that's pushed or not.
QUEST: How many people are you expecting this year?
STRAUS: We have nearly a million people here in Times Square joined by over a billion people around the world who are watching this ball come down at
midnight and counting down together. There is nothing else like it. We have that many people counting down in unison the final second of the New Year.
It's truly magical.
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QUEST: You couldn't invent it and you couldn't make it up if it wasn't already there. In case you are still looking for that perfect holiday gift,
Russia's President may have just the thing for you.
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QUEST: We'll tell you about that after you have enjoyed a highlight of make, create, innovate.
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[16:52:01]
QUEST: And to our top story tonight. We've just got a statement from Bill Cosby's attorney, it says it comes as no surprise about today's charges
that brought him to be arraigned in court.
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QUEST: And the attorney says make no mistake, we intend to mount a vigorous defense against this unjustified charge. And we expect that Mr. Cosby will
be exonerated by a court of law.
(END VIDEO CLIP)
QUEST: Now if you have a moment for a present or two. How about this thought? The Russian President Vladimir Putin has the perfect holiday gift.
It's a 2016 calendar featuring himself.
The word from Moscow is it's selling very well. I'm not surprised.
Senior international correspondent, Mathew Chance reports.
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MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: For fans of Vladimir Putin there's no shortage of stuff with the Russian President's
image all over it. These Putin t-shirts have been around for a while but they're still popular new year's gifts.
All right, so this is the most popular one. It's a (inaudible) t-shirt?
[Speaking foreign language]
So how well do these tee shirts sell?
(DANAl PERTIOV, SHOP ASSISTANT "HEART OF RUSSIA") (As translated) They sell really well, maybe tourists buy them. But our compatriots buy them as well.
They love Putin.
CHANCE: Despite a deep economic crisis and international isolation over the walls in Ukraine and Syria, Putin's ratings are doing well, too.
So what about spending the entire year with President Putin? Well, that's what this 2016 Putin calendar is promising. With every month revealing a
carefully chosen image of the Russian leader. This one has him in Siberia with a horse in the forest. Here, he's smelling a flower and this third one
over here, he's working out in the gym.
But photographs aren't all you get with this calendar, you get Putin's words of wisdom too.
Some are characteristically hard line like this one for the month of October "no-one will succeed in gaining military superiority over Russia"
Putin says. Others hint to the softer side, "dogs and I have very warm feelings for one another" says the Russian leader for November.
One group of Putin supporters have put together an entire book of Putin's best known remarks and one-liners, publishing a limited edition which is
set to go on sale next year. The books called "Words Changing the World", and it's publishers say it makes the perfect holiday gift for patriotic
Russians.
And if reading, Putin isn't enough, you can now smell him, too. With a new men's fragrance that has just hit the shops here in Russia. All right,
well, here it is, it's called leaders number one. But make no mistake with the profile of Vladimir Putin on the side and the words inspired by
Vladimir Putin, it's pretty clear which leader they're referring to.
[16:55:09]
CHANCE: Now the advertising bump says that it smells of citrus fruits and pine needles. A mixture of hard and soft, just like the President Putin,
himself. So I suppose I should give it a try shouldn't I? Let's have a smell.
Hmm.
UNIDENTIFIED FEMALE: Do you like it?
CHANCE: I'm impartial on it. But I can see how it wouldn't be to everybody's tastes.
Mathew Chance, CNN, Moscow.
(END VIDEO CLIP)
QUEST: I think I've just solved my gift giving for next year. Putin all around. Profitable moment after the break.
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(COMMERCIAL BREAK)
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QUEST: Tonight, short of profitable moment, the Dow ends the year off 1%. The FTSE ends it off 4.5%. The DAX and the Nikkei they are both up. All of
which proves the point that you win some, you lose some on the markets and this year has not been one of those banner years. Particularly after all
the volatility that we saw in the summer.
The good news is, of course, that not much damage was caused by the end of the year. And the even better news is we get to do it all over again.
This is the last edition of QUEST MEANS BUSINESS for 2015. And all remains for me to say, I'm Richard Quest in New York and, as always, thank you for
taking time to be with us for our nightly conversation and whatever you're up to in the year ahead, I hope it's profitable. We do it again in 2016.
END
