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Quest Means Business
Stock Market Volatility Examined; Pope Meets with Patriarch of Eastern Orthodox Church; Greek Protests and Border Controls; Dealing with the World's Problems; The Independent to Cease Production of a Print Issue. Aired 4-5p ET
Aired February 12, 2016 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[16:00:00]
MAGGIE LAKE, HOST: A rebound to end the week as the closing bell rings on Wall Street. It's Friday, February 12th.
(BEGIN VIDEO CLIP)
LAKE: A sprint to the finish. Stocks soar as oil jumps the most in seven years.
Farmers fearing clashes between protesters and police in the Greek capital over pension reform.
And bridging a 1,000 year divide. This hour, the Pope and the head of the Russian Orthodox Church will sign a joint declaration.
(END VIDEO CLIP)
LAKE: I'm Maggie Lake. This is "Quest Means Business."
Good evening. The Dow has bounced back closing more than 300 points hour and it's thanks in part to oil.
(BEGIN VIDEO CLIP)
LAKE: U.S. crude prices spiked today in the biggest one-day rise since 2009. WTI crude is trading more than 11% higher. Brent, the European oil
price benchmark, is up by 10%. It looks like a lot of traders decided the heavy losses earlier this week had been overdone.
Also a weekly report on the U.S. oil industry showed that the number of active drilling rigs fell for the eighth straight week.
(END VIDEO CLIP)
LAKE: Let's go to Alison Kosik who is at the New York stock exchange. And Alison, we were talking at the start of trade today that there wasn't a
whole lot of confidence in those early gains but, boy, sentiment did seem to solidify as the day went on.
(BEGIN VIDEO CLIP)
ALISON KOSIK, CNN CORRESPONDENT: You're absolutely right. You know traders are surprised that the bulls held on until the close here, especially on a
long holiday weekend where you have the U.S. markets closed on Monday, you've got the rest of the Asian markets opening on Sunday night. So yes, a
lot of surprise that we're seeing these strong green arrows at the close.
And as you said, higher oil prices pushing stocks higher so this relationship of oil and stocks moving in lock step, that relationship
continuing. You know the way investors see it, Maggie, the massive plunge that we've seen in oil overall is not just the supply problem, it's a bad
omen, signaling something wrong with the underlying economy. But when you see oil recovering like it's doing today, that signals strength in the
economy and gives investors a reason to buy back into the market. And apparently with a little more conviction. But keep in mind one day does not
make a trend. And you have to remember, we're only in the first couple weeks of February and so far this year the trend has been down. Maggie?
(END VIDEO CLIP)
LAKE: Listen, I'm not sure when I see this kind of turnaround, I'm not sure that gives me much confidence. It seems that it's still all about
volatility and investors are sort of a trigger figure on every sort of headline that comes out.
KOSIK: Yes, I think you are seeing a market that is headline driven, especially when it companies to oil.
(BEGIN VIDEO CLIP)
KOSIK: But you have some backbone to this rally today, although many traders I've talked to said they don't believe this is going to last. But
at least you've got - you know you've got stronger data overseas, you've got stronger data here in the U.S. You know, one thing that played a role
in today's trade was that retail sales number in January rising about .2%. That exceeded expectations. And what that was, essentially was a reminder
that even as stocks have tanked this year the American economy isn't. So yes, we've seen growth slowdown dramatically as far as the end of last year
goes but it is expected to rebound early this year so maybe you're starting to see, at least for one day, a little bit of separation between what's
happening in the market and what's happening in the economy.
(END VIDEO CLIP)
LAKE: That's right, and even if it's tentative, we'll take it on a Friday. Alison, thank you so much.
KOSIK: You got it.
LAKE: Now, dramatic scenes are playing out again in Athens. We want to show you what happened in the Greek capital in the past few hours.
(BEGIN VIDEO CLIP)
LAKE: Protesters were back outside the parliament. They are angry over the government's proposed pension reforms. The changes are one of the
conditions that Greece's international lenders insisted on as part of its third bailout. Earlier, farmers clashed with riot police outside the
agricultural ministry in Athens. Police fired tear gas to break up the crowd. All of this comes on the day new data revealed Greece is back in
recession.
(END VIDEO CLIP)
LAKE: The Greek government has got challenges on other fronts too. The continuing influx of migrants is adding to the economic burden.
(BEGIN VIDEO CLIP)
LAKE: The European Union today gave Greece three months to improve its border controls. If it fails to do so, it could face suspension from the
E.U. Schengen zone where travel is supposed to be passport free for up to two years.
The International Organization for Migration says more than 77,000 have arrived in Greece so far this year, much of them, most of they, coming
ashore on Greek islands after crossing from Turkey.
And NATO said this week it is starting patrols in the Aegean Sea to try to stop people smugglers.
(END VIDEO CLIP)
LAKE: A short time ago I spoke to Greece's Labor Minister, Georgios Katrougalos, and he is a Syriza MP and a close ally of Prime Minister,
Alexis Tsipras. He told me that the protesters are not against his government and that they can work together.
(BEGIN VIDEO CLIP)
[16:05:00]
GEORGIOS KATROUGALOS, GREECE LABOR MINISTER: Listen, the last six years have been very tough for the Greeks. The austerity policy did not work and
it made 1 in 4 Greeks unemployed. And practically 1 in every 2 Greeks very close to the threshold of poverty.
Now we're trying to make reforms that are not in line with austerity policies but still we must change things. The pension - the pension reform
is one of these reforms. We're trying to redistribute a much smaller pie but do it in an equitable way following rules of social justice and
equality.
(BEGIN VIDEO CLIP)
KATROUGALOS: It is normal for people to react. Not against our policies, but they are fed up -- because they are fed up with six years of
continuous austerity policies.
LAKE: They voted for a government that said they were going to end austerity. That's not what's happening now. Do you believe that Greece
still has the support of people?
KATROUGALOS: Yes, we have the support of the people because it's true. It did not matter until now to reverse completely the austerity policies.
(END VIDEO CLIP)
KATROUGALOS: But we are trying to implement completely different policies than the liberal ones.
LAKE: Minister, some would say what you're trying to do is the impossible. You have an economy that's slipped into recession. And at the same time,
you have an influx of migrants, of refugees, coming into the country. The E.U. has given you an ultimatum. Three months, fix your borders or you're
going to be kicked out of the passport free zone. What's your response to your European partners?
KATROUGALOS: Well, it is absolutely true what you're describing. It's the perfect storm. Two crisis. Austerity crisis, refugee crisis. And to us who
are Greece in the middle.
We're trying to cope with both of them having in mind principles of justice. The refugee crisis is not a Greek issue, it is a European issue.
So every country in Europe must take its share of the burden. And try to keep also the humanitarian principles of Europe alive. Europe must not
become a fortress but also Europe must try to manage these flows of immigrants and refugees certainly.
LAKE: How are you going to reform the economy and at the same time handle the economic burden that is associated with trying to just process and
house the influx of people coming in? How can you do that at the same time?
KATROUGALOS: You are absolutely right, it's very difficult. And there is another factor in this equation. We have - we have been obliged to sign in
July a new memorandum that contains elements of neo liberal policy with which we do not agree. So we are trying to do something that seems to be
impossible, that is respect our engagements and (inaudible). Try to neutralize whatever is neo liberal in this agreement. Try to help our
people. And at the same time, cope with a situation that will become really impossible to be handled by any country of Europe. Just imagine that there
are small islands of 20,000 inhabitants that are receiving more than 50,000 inhabitants in ten days.
But we must do it. We much not escape our responsibilities. And we must do it in the right way.
LAKE: Markets in Europe close the week on a positive note. We received official figures showing the Eurozone grew by a very modest 0.3% in the
final quarter of 2015.
(BEGIN VIDEO CLIP)
LAKE: Banking stocks, importantly bounced back today. Take a look at some of these gains; Commercebank, soared up 18% after it delivered better than
expected results. And Deutsche Bank jumped nearly 12% on news that it was launching a $5 billion bond buyback.
(END VIDEO CLIP)
LAKE: Jeffrey Sachs is the Director of Columbia University's Earth Institute. It is dedicated to finding sustainable ways of tackling some of
the world's biggest problems and he is here with us now. So nice to see you, Jeffrey. The world has some very big problems that we are dealing
with.
JEFFREY SACHS, DIRECTOR OF COLUMBIA UNIVERSITY'S EARTH INSTITUTE: Thank you. Well we have a cascade of them.
LAKE: We do. I want to ask you about Europe. I mean we saw the markets and banking stocks rebound. But let's not kid ourselves. This is an incredibly
challenging environment. You have barely any growth despite all the policies put in place. You have some countries resorting to negative
interest rates. You've got the refugee problem. How concerned should we be about Europe right now?
SACHS: I think we should be concerned about the world economy. Because in the U.S., growth is obviously very slow right now. We don't know how slow
but the fourth quarter was very weak. China has slowed down tremendously. Europe is battered. Greece is back in recession. And protests are pretty
dramatic in constitution square once again. The refugee crisis and the kind of paralysis everywhere on forward motion.
[16:10:12]
SACHS: The only actions that are taking place almost anywhere are central bank actions. Where is public investment, where are our strategies for
long-term growth, they're nowhere to be seen.
LAKE: I'm glad you say that because if you look at what's happening in, you know, among polls, electorates, people everywhere, I think people
understand that. There is such frustration about what appears to be a crisis of political leadership.
SACHS: We have so many needs to transform the economies for energy, for the climate change, for building infrastructure, yet what's happening? Nothing.
LAKE: Why is that? Is it because in order to do that, they've got to make some really tough choices that are going to hurt people? That's what
politicians lead us to believe. Why aren't we seeing any action?
SACHS: I think because they're not thinking very clearly to begin with. There's very little planning going on. Look at the United States. We can't
seem to think ahead, stumbling one foot ahead of the next. In Europe, it's the same way. They're consumed with this Syrian migration crisis.
And so there was the Juncker plan for investment but it's not taking place at all. And how nasty they were to Greece because Greece is on the front
end of the migrant crisis but they've just squeezed them brutally with more austerity. And I'm afraid the minister had no way out when he was saying
that there are no answers. But the fact of the matter is, they've been pushed to impossible policies and it's a shame that Europe pushed Greece
right back into recession.
LAKE: Right, and so against this backdrop, if you talk to the average person and you see what some of them are doing. I had a retail broker tell
me somebody walked in with the prospect of no gains, took all of his money out of his account and stuck it in his bank even though he'll get no return
because he's so scared that we're on the precipice of another financial crisis. Do you think we are because of the situation just described?
SACHS: We seem to have no policy instruments other than the central banks and the central banks have really fired what they could and they don't seem
to have too much more in them. That's the worry. If we had alongside the central banks some serious investment policies, some programs for growth,
some strategy, I think there would be a lot more calm, but nobody's seeing that now.
LAKE: Yes, it's a very difficult time and it's hard to see the way forward. I think the volatility is going to stay with us. Jeffrey Sachs, always a
pleasure to see you. Thank you so much.
SACHS: Thanks for having me, good to be here.
LAKE: Nearly 1,000 years after the Christian church split down the middle, the heads the Catholic and Russian Orthodox churches have their first ever
meeting.
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
(COMMERCIAL BREAK)
LAKE: We are waiting to hear a declaration from a meeting between the leaders of the Roman Catholic and Russian Orthodox churches. Any minute,
Pope Francis and Patriarch Kirill are expected to speak to the media. There has never before been a meeting between the heads of these two churches.
(BEGIN VIDEO CLIP)
LAKE: And Eastern and western factions of Christianity split apart in the year 1054, an event known as the great schism. The Vatican has repaired
relationships with several other Orthodox churches in recent decades. The meeting is taking place on neutral ground in Havana, Cuba.
CNN correspondent, Patrick Oppmann is in Havana, and CNN senior Vatican analyst John Allen is in Denver, Colorado. Thanks to both of them. Patrick,
first to you; give us a sense of what has been happening on the ground on what is by all measures an incredibly historic day.
[16:15:18]
PATRICK OPPMANN, CNN CORRESPONDENT: It's something of an amazing scene to see these two men. The first leaders of the churches to ever meet and to
see them hugging and kissing each other on the cheeks chatting for a few moments while cameras were allowed in the meeting in Spanish and Russian.
(BEGIN VIDEO CLIP)
OPPMANN: It has really been something quite unprecedented. In all places, to have this take place in Cuba, a country that was until recently an
officially atheist country. But we saw President Raul Castro greet the Pope as the Pope made this until last week, unexpected stop here. Although these
talks have been going on for about two years we've been told, on his way to Mexico. And of course the Patriarch Kirill, the leader of the Russian
Orthodox Church had been planning the beginning of his Latin American tour here in Cuba.
And essentially the Vatican said that this was neutral territory, a place where both could meet and put the years of bad blood - the centuries of bad
blood really behind them.
(END VIDEO CLIP)
OPPMANN: And now we're just waiting, any minute now, the - Kirill and Pope Francis should emerge from this 2 hour long private meeting and give a
statement and sign a joint declaration. Basically calling on -- calling for greater protections of Christians in the Middle East and in Africa who of
course we've seen have suffered horribly at the hands of terrorist groups like ISIS.
LAKE: And John Allen, it's extraordinarily, when you see that headline. And I think we need to let it sink in. 1,000 years has passed. Why now do
you think this was able to happen?
JOHN ALLEN, CNN SENIOR VATICAN ANALYST: Well, you're absolutely right, Maggie. The truth of it is, in the news business, you very rarely have the
chance to say that an event you're covering has been a millennium in the making.
(BEGIN VIDEO CLIP)
ALLEN: But that more or less is the reality of the situation today with this historic encounter between Pope Francis and Patriarch Kirill of
Moscow.
In terms of the why now? I think it was one part dumb luck and one part design. The dumb luck is that Kirill was also scheduled for a visit to Cuba
when the Vatican announced the dates for Pope Francis' visit to Mexico, and that of course made it logistically feasible for the two men to meet.
I think the design is that both of these leaders, although they're very cognizant of the theological and the political differences between the two
churches and they are, we should say, significant. I mean there are important elements of the Russian Orthodox Church that do not think that
the Roman Catholic Church is a valid Christian Church.
Meanwhile, there are important elements of the Catholic Church that deeply resent the Russian Orthodox policy in place such as Ukraine, where many
Russian Orthodox clergy have backed the Russian incursion into Eastern Ukraine.
Yet despite all of that, both Francis and Kirill clearly believe that something incredibly important is at stake in making this meeting happen
now. I think they believe that theologically in terms of the press for Christian unity, they also believe it politically in the sense that there
are Christians around the world today, particularly in the Middle East. There are about 5 million Catholic Christians in the Middle East, and about
5 million Orthodox Christians in the Middle East. Both of them are in the front lines in terms of the victims of ISIS.
They want to pool their resorts to try to be able to do something on behalf of that embattled flock. And so they were willing essentially Maggie, to
brush aside centuries of history in order to make this encounter happen.
LAKE: Rosa Flores has been traveling with Pope Francis, she joins me now on the phone from Havana. And Rosa, we heard Patrick just saying, you know,
that there is such a sense that history is changing. This is a Pope who has been a customer we now I think in some way expect to come up with these
extraordinary events. What's the feeling of all of the people that are also traveling with the Pope?
ROSA FLORES VIA TELEPHONE: You know I was briefed by an Italian priest who's an expert in this matter in Rome before getting on the papal plane.
And one of the things that he pointed out that really stood out to me was that Patriarch and Putin actually go way back, Maggie.
He was explaining to us that they're friends, that the Patriarch is Putin's spiritual leader, that their friendship goes back to the 1980s, and so this
encounter probably did not happen or would have not happened if Putin wouldn't have blessed this encounter. So I thought that was fascinating.
[16:20:10]
FLORES: The other thing that is completely unexpected on the why now is this other thing that I didn't know about the Patriarch. Apparently, he has
- and this is again from the Italian priest who's an expert in this subject matter. He said the Patriarch has a T.V. program in Russia where people
call in. He's very popular in Russia. So he's almost like a Pope-like figure there. What we know Pope Francis to be, which is very charismatic.
People love him. Everywhere that he goes, there's this Francis effect.
So if you think of the two people that are having this meeting right now, and how they impacted the fact that this meeting is happening. Also a big
part of why. And the other thing that this priest pointed out is that Pope Francis is not one to flaunt his authority, to impose his authority, and
he's not one to focus on the doctrine. He is focused on dialogue and building bridges and that's what we're seeing here. That's what's -- is
pretty much the symbol - the big symbol that we're going to see out of this. Because he pointed out you know we're not going to see anything
concrete change in these two churches. The symbols are what's making the big splash here.
LAKE: That is fascinating Rosa. Shared sensibility of these two very, very popular leaders who have now the opportunity to change the course of
history at least for Catholics and for Christians.
All right, as we said, we are standing by, waiting for them to come out of this private meeting. It's obviously extending a bit beyond what we
thought. Rosa Flores is standing by, as is Patrick and John Allen. We will return to that when the event happens. Thank you to all of you.
(END VIDEO CLIP)
LAKE: Now a major shift for readers of one of Britain's most respected newspapers.
(BEGIN VIDEO CLIP)
LAKE: We'll discuss what the future holds for the independent and other papers with its former editor in chief.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
LAKE: A big shift in the British media landscape. The Independent newspaper will cease to appear in print after March 26 because of plunging
circulation.
(BEGIN VIDEO CLIP)
LAKE: Its future will be online. The Russian owner Evgeny Lebedev said "the newspaper industry is changing and that change is being driven by readers.
They're showing us that the future is digital."
(END VIDEO CLIP)
LAKE: The Indy, as its readers call it, was groundbreaking when it launched in 1986. It boasted of being free of any partisan influence.
(BEGIN VIDEO CLIP)
LAKE: This was it's very first front page at a time of growing economic turmoil.
It became known for its innovative front pages. This was the one at the turn of the millennium. And another famous one from 2004 on a controversial
investigation into the U.K's entry into the Iraq war.
(END VIDEO CLIP)
LAKE: Simon Kelner was the paper's editor-in-chief for over 10 years and he says "the Independent's move is likely to be followed by other titles." I
asked him whether it was actually the internet that killed the Indy.
(BEGIN VIDEO CLIP)
SIMON KELNER, FORMER EDITOR IN CHIEF, INDEPENDENT: There's been a huge number of market forces that are applicable to the Indy and also to lots of
other newspapers in the market.
I think newspaper print circulations the world over has been challenged for the last 20 years. And I suppose there was an inevitability about the --
one of them in Britain taking this - taking this plunge. And "The Independent" was the first to do so. It would be a brave person indeed to
say that other newspapers aren't going to follow.
(END VIDEO CLIP)
[16:25:21]
LAKE: You obviously presided, you know, over this for years, over some of you know, some of the best years some might say. How do you feel about this
when you see this transition we're on? Do you mourn for the old days? Is this the end of an era? Are the best days behind publishing?
KELNER: Well, I do mourn for the old days when I was editing the paper and we had a very benevolent proprietor and we were able to spend a lot of
money on quality journalism and we produced an award winning newspaper.
Of course, there's an element of sadness for someone like me who is romantically attached to printed newspapers. But in a sense what I'm
worried about is the future of journalism rather than the future of newspapers. I don't care whether -- a newspaper is just a format, it's just
a way of delivering journalism. I don't really care how that journalism is delivered. Whether it's delivered on a screen, in a newspaper, or on a
piece of crisp bread, it doesn't matter. What matters is that quality journalism, the sort of journalism that holds governments to accounts and
scrutinizes big business, that that journalism has a future in the online world.
LAKE: Do you think that is a future that can exist in a for profit world with so much competition digitally?
KELNER: Well who knows. I mean, maybe the future of the newspaper, quality newspaper online, could be very similar to how newspapers sustain
themselves as printed products, i.e. with a benevolent proprietor.
LAKE: Oil stocks rally giving U.S. stocks a much needed boost. We look at crude's rocky journey and where it might head next.
(BEGIN VIDEO CLIP)
(END VIDEO CLIP)
(COMMERCIAL BREAK)
LAKE: Welcome back, we want to take you live to Havana for historic declaration following the meeting between the Pope and the head of the
Russian Orthodox Church.
(BEGIN VIDEO CLIP)
LAKE: They have just come out of a private meeting and are signing a declaration now.
[speaking foreign language].
[16:30:00]
LAKE: The signing there is taking place in Havana, Cuba. A spot deemed to be neutral territory. This is the first time there has been a meeting
between the heads of these two churches. It is a rift that has gone on for 1,000 years.
Let's bring in John Allen while we watch this. And John, interesting, we were talking about this just before the break. These are two spiritual
leaders who are incredibly charismatic, incredibly popular. What does this tell us about the legacy they are going to leave behind in doing this?
Although there are still differences, it's a small step, but it's a very significant one.
JOHN ALLEN, CNN CORRESPONDENT: Yeah, Maggie, it's extraordinarily significant. I mean in the sense that, you know, popes have been meeting
Orthodox leaders for the better part of 50 years. Pope Paul VI met Patriarch Athenagoras, the Ecumenical Patriarch of Constantinople in 1964.
But this is the very first time that a pope and a Russian Orthodox leader have gotten together. And but the particular significant of that, I think
is that these are the two biggest kids on the block in western and eastern Christianity.
The Catholic Church is the biggest western Christian church. The Russian Orthodox claim almost two-thirds ...
LAKE: John, I just want to jump in, it looks like they're speaking. Let's listen in. I think we have translation.
PATRIARCH KIRILL, PATRIARCH OF MOSCOW: (Speaking foreign language)
(Through translator) With full understanding and responsibility -- for our churches, for our people, for the Christian future. Of the future of human
civilization. This was a very full discussion. Which gave us the possibility to understand and feel each other's positions. The result, the
discussions say openly, we can work together to protect the Christianity throughout the world.
With full responsibility of working together. Ensure there are no wars. So that we can support humane life everywhere. To strengthen the basis of
family and personal development. And social development. And with the participation of the churches contemporary life and the church in the life.
Has the words of the father, the son and the holy spirit.
Pope Francis has the floor.
POPE FRANCIS, POPE OF THE ROMAN CATHOLIC CHURCH (through translation): Our dear brothers. We spoke as brothers of the same faith and to find the same
way the same path.
[16:35:08] We spoke very openly. I saw you in this dialogue. I feel the presence of the Holy Spirit. And I thank his holiness for his efforts, for
his strengths, so that together we find these ways to work together. And we discussed a whole number of initiatives I think can be implemented in
time. And therefore once again I warmly thank his holiness and his assistants as well as the cardinal for their work in preparation for this
meeting. We also want to thank Cuba, its government, president.
I thank this government of Cuba for their efforts for that reception. And in this way in the future, this can be a form of dialogue and unity. And
so that all of this is in the words of God, the son and the Holy Spirit, believers, believing people. Working together in the name of ...
(OFF-MIC)
LAKE: All right, the leader is wrapping up there. I want to just bring in John Allen. And John, you heard what they had to say. This was so long in
coming. But clearly still a very delicate situation.
ALLEN: Yes, that's right. I mean, no one should be under the illusion that as of today, all of the problems between Catholics and the Russian
Orthodox are going to be solved. But, you know, on the Catholic side for example, there is the situation of the 5 million strong Greek Catholic
church in Ukraine, that's a church that follows Russian Orthodox traditions but is in full communion with Rome. That has often been at lagger heads
with Moscow over a number of issues including the recent Russian incursion into eastern Ukraine.
You know, on the Orthodox side, there's the whole question of the imperial ambitions of the papacy to dominate the Christian world. Certain
theological issues about the creed of the Christians say during their Sunday worship and so on. So, I mean it's not like we're living in a new
world as of today. But on the other hand, I think what is clear is that both these leaders, that is Pope Francis for the Catholics and Patriarch
Kirill for the Russian Orthodox are profoundly committed to the quest for unity.
And look, let's face it, we live in a time when religion is often seen not as a source of unity but as source of division, sometimes it causes
conflict and violence.
[16:40:05] And in the context to have arguably the two most important Christian leaders in the world, but saying that unity above all is
important to them and that can't help, Maggie, but be significant.
LAKE: John, I'm glad you brought that up. Because, you know, we're looking at Pope Francis from almost the moment that he became the pope.
You know, we talked about what his legacy might be. I mean, I think you summed it up really beautifully there in terms of unity.
He has not been afraid to take on almost every issue that you can imagine and try to bridge gaps wherever, even taking to task fellow priests for
corruption, for leading a good life. He's reached out to prisoners, to poor, to all sources of disenfranchised populations that were really
feeling cutoff in the Catholic Church. It's been quite extraordinary what's happened in the short time. Even seeing Raul Castro standing right
to the side of these two men many thought would never get together.
ALLEN: Yeah. And let's remember, Raul Castro not long ago said that if Pope Francis kept it up, even he might have to come back to the Catholic
Church. You know, the head of state of the country that is still of course officially Marxist and atheist.
You know, look, you're absolutely right. You know, almost 50 years ago, Pope Paul VI said that he wanted the Catholic Church to be what he called
an expert in humanity that is, you know, in dialogue with all of the different sectors of human experience.
And, that might sounds like an abstraction, but mean, Pope Francis is a guy who brings that down to the street. You know, he began his papacy by
giving his very first interview with a left-wing atheist journalist in Italy by the name of Eugenio Scalfari. Shortly after that, he delivered
his famous sound bite about, who am I to judge with regard to gay people.
You know, he's gone on to reach out to followers of other religions, to followers of other Christian traditions, you know, to different people over
the world. Particularly, what he calls those at the peripheries, the marginalized that is the poor, migrants, refugees, you know, the elderly
and so on.
And I think he is a pope, who -- although he has a complicated cluster of priorities, I mean, at the bottom of it all, you know, this is a pope that
wants the entire world to see the Catholic Church as a friend and a dialogue partner not as an obstacle to progress.
LAKE: Yeah.
ALLEN: And because of his own commitment, and his own willingness to, you know, to walk his own talk, I think people are willing to buy that about
him.
LAKE: And we heard Rosa are also laying out the charisma surrounding the Russian Patriarch who's also instrumental in his own way in this moment
that we are watching unfolds right in front of our eyes.
John Allen, thank you so much for all your analysis for us. And "Quest Means Business" will be right back in a moment.
(COMMERCIAL BREAK)
Welcome back. Just moments ago, the Pope and the Patriarch of the Russian Orthodox Church signed a declaration after talks in Havana, Cuba. This
meeting was the first ever between the heads of the two churches since eastern and western Christianity split apart almost 1,000 years ago. The
leaders spoke about protecting Christians, particularly those in danger in the Middle East.
Now, here's a question to our viewers in Europe. Have you ever bought anything with a 500 Euro bill?
[16:45:06] Well soon, you may never have the chance. Some European ministers are calling for the 500 Euro bill to be scrapped. They say it
would help in the campaign to shut off funding for terrorism. It would be a big change too according to Euro poll, it accounts for 30 percent of the
value of all Euro bills in circulation even though it's quite rare.
In a survey that was done for the ECB, more than half people asked said that they had never even seen one. The French finance minister says the
500 Euro bill is being widely misused.
(BEGIN VIDEO CLIP)
MICHEL SAPIN, FRENCH FINANCE MINISTER (through translation): The 500 Euro note is used more widely to conceal than it is to purchase. More widely
used to make dishonest transactions easier than allowing yourself or me to use it. So, it's normal that we're asking ourselves the question today on
the use of this note. I also understand that it can create a debate on other countries which are more used to using cash such as Germany.
(END VIDEO CLIP)
LAKE: Let's discuss this with Juan Zarate, he's an expert on international counter-terrorism. He is a Senior Adviser at the Center for Strategic and
International Studies. And he joins us from Washington. Juan, thank you so much for being with us. You know ...
JUAN C. ZARATE, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: My pleasure.
LAKE: ... it's interesting to hear that this is somehow used in terrorism. I think that's counterintuitive. People think in a cash organization,
you'd be looking at small bills. How does this fit into the infrastructure?
ZARATE: Well, part of this has to do with the changing shape of terrorism and terrorist financing. You now have groups like the Islamic State
running war economies and actually running major municipal centers and having to pay salaries and engage in governance.
And so, that is largely cash intensive. And they're engaged in other types of trade whether it's oil smuggling or antiquities where cash is changing
hands. So, you have a lot of concern that terrorist groups are now using cash in bulk the way that frankly drug trafficking organizations have in
the past.
And I think that's why you see the European Union leaders, and you heard the French minister talk about this vulnerability. It's not new of course.
But, certainly, in the wake of this development in terms terrorist financing, it's something they're now focusing on.
LAKE: Sure, and I guess against that context, the bigger the bill, the smaller the briefcase you got to carry around. And you can move more
around, higher denominations.
So, we know that this is -- if they're getting that sort of microscopic, looking at all these different ways, we know that they've been trying to
bomb some strongholds of cash. Are they tightening the net on the financing of these terrorist organizations? Are they getting better at
hurting them?
ZARATE: Well, they're trying. We had a playbook post 9/11 that worked very well to constrain the reach and the resources available to groups like
al-Qaeda. The difficulty in 2016 though is that these groups have learned to adapt. They've developed local economies, ways of living off the land.
Certainly, using the resources that they've been able to control to raise capital and to pay their fighters, as well as the other things that they
have to do to run their operations.
But you do see the international community doing much more. You've demonstrated and we've seen this in video of the military actually hitting
these stores of cash that the Islamic States has used to distribute money. The U.S. military has hit nine of these installations, literally blowing up
these stores of cash.
And so, both that, plus regulation, more intelligence work to understand how these groups are operating in the international system, the traders,
the brokers that they're relying on. All of that is raising awareness and beginning to constrain at least some of the reach of the organizations like
the Islamic State.
LAKE: All right. Thank you so much. And no one knows more about this than you do, Juan. Always appreciate you coming on and giving us your
expertise.
ZARATE: Thank you, Maggie. I appreciate it.
LAKE: Now, when love ceases to be ideal and starts getting real. Valentines made by a married couple for married couple, first to highlight
from Make Create Innovate.
(COOMERCIAL BREAK)
[15:50:00]
LAKE: Americans are expected to spend a record $19.7 billion on tokens of love for their loved ones this year on Valentine's Day. That is according
to the National Retail Federation. They say love is eternal but it seems the cards that signify our love changed with the time.
Check out this Valentine from around 1875. The little god Cupid is pictured delivering cards for St. Valentine's Day, as the woman, courtesies
to greet him.
By 1906, Cupid has lost his wings and gotten behind the wheel of a car, decorated with flowers and hearts.
And in 1919, this card features a soldier returning from war declaring, he'll save all his dances or his Valentine.
Hot off the presses in 2016, a unified front in love, the card celebrating a couple as a team standing side by side. It's part of a new line created
by a married couple who design cards for Hallmark.
Justin and Tuesday Spray, join me from Kansas City, Missouri. They're the only couple to team up on Valentine's at Hallmark for as long as anyone can
remember.
Thank you both so much for being with us. Tell me, is it as hard as I think it is to come up with something new to say about love?
TUESDAY SPRAY, HALLMARK DESIGNER: That's for the writers to answer. We're lucky and we just have to illustrate and design to it. But, you know, they
get us talking about love and it's natural. We talked about it and they write about it. It's here, you know.
LAKE: And, what do people -- what's popular now? What do people looking for in these Valentine's Day card? A lot of people dismiss it as
commercial. They feel obligated. What do you try to think about when you're looking for inspiration?
T. SPRAY: Well, you know, there's a lot of diversity in how we communicate these days. And so, as artists at Hallmark, we're really thoughtful about
all of the different kinds of love that exists and how people want to say that and communicate that.
You know, one guy might not be comfortable getting all gushy and lovey, whereas, another guy really needs us to give him those words because he
doesn't know how to do it. So, we're thinking about everything in between there and for us ...
JUSTIN SPRAY, HALLMARK DESIGNER: I'm definitely not gushy.
LAKE: I was going to say, Justin, you're shaking your head ...
J. SPRAY: No.
LAKE: ... and smirking a lot during this.
J. SPRAY: Yeah
LAKE: How difficult is it to work as a married duo?
J. SPRAY: You know it has its challenges at times.
T. SPRAY: Watch how you answer this, buddy.
J. SPRAY: Yeah. No, but it's got challenges but for the most part it's been great. I love having her work with, you know, work together. And
yeah, I mean, it's been awesome.
LAKE: Now, I'm sure -- I'm sure, you must get people asking for advice. I mean it's like anything else, when you do it for a living and people find
out about it at a party, they want to know what can they do, what should they do. You guys see it all.
I wanted just throw out, there's sort of a backlash a little bit too sometimes. I've seen a lot of anti-Valentine's Day cards out there and
we're showing a couple of them. What do you tell people when they're saying, "What should I do for my partner on Valentine's Day? What's the
best tone to strike?
T. SPRAY: You better just do something that lets them know how important they are, you know. I mean, that's kind of what we're doing. We laugh
about the phase of life that we're in. It's no longer romantic dinners and roses. I joke that sometimes the diaper gets changed at the end of the
meal and the romance is out the window.
So, there's all different ...
J. SPRAY: Yeah.
T. SPRAY: ... ranges of love. But the bottom line is, you're doing this together with the person in life and you better just be able to give them a
hug and let them know how valuable they are to you, regardless of how you want to do that, but a card helps.
LAKE: A card helps. We'll listen. We appreciate all the hard work you do helping us out on this holiday. Thank you so much. Justin and Tuesday
Spray for us.
J. SPRAY: Thank you.
LAKE: Now, "Quest Means Business" will be right back in just a moment.
(COMMERCIAL BREAK)
[16:55:00]
Markets are chasing the price of oil in whichever direction it may be going and it is taking a toll. The NASDAQ has been seen creeping towards its
first bear market since the 2008 financial crisis.
300-point swings on the Dow are starting to become commonplace. We've just seen four triple digit moves in five days. And this week, our guests were
beginning to use the word recession.
(BEGIN VIDEO CLIP)
KEN ROGOFF, HARVARD UNIVERSITY ECONOMIC PROFESSOR: There's certainly this lingering remembrance of what happened in 2008, could it happen again, and
people are just getting this uneasy feeling.
VICKY PRYCE, CENTRE FOR ECONOMICS AND BUSINESS RESEARCH: The rise in U.S. interest rates, however small it was, seriously unsettled the markets. I
think everybody had underestimated the slowdown in China. Nobody had forecast the very sharp drop in oil prices and other commodity prices we
have seen.
UNIDENTIFIED FEMALE: This really is the moment of worry. This really smacks of 2008, 2009. Basically fear breeds more fear and it becomes fear
of fear itself.
RANDAL KROSZNER, UNIVERSITY OF CHICAGO BOOTH SCHOOL OF BUSINESS: I think it's unlikely in practice that the Fed is really even going to seriously
consider any rate increases before the second half of the year.
This is a really unusual time period. Most central banks around the world are cutting rates and even have negative rates. To think about how odd
that is that people instead of getting paid, are paying to buy someone's debt. That's so unusual.
SCOTT SHELLADY, @SCOTTTHECOWGUY: It's not the misery of the market. I can take the misery. It's the hope that's killing me, OK?
TED WEISBERG SEAPORT SECURITIES FOUNDER AND PRESIDENT: Central bankers around the world including our own Fed with all their double talk and all
their Fed-speak basically create more questions than they do answers, lack of direction, a lot of verbiage, but no real direction, no game plan. And
as the world flounders the market has finally caught up.
(END VIDEO CLIP)
LAKE: Just a reminder of how the markets closed out the week. The Dow has bounced back, closing more than 300 points higher. And it is thanks in
part to oil. U.S. crude prices spiked today, in one of the biggest one-day rises that we've seen since 2009. WTI Crude is trading more than 11
percent higher. Brent, the European oil benchmark is up by 10 percent.
And that is "Quest Means Business." I'm Maggie Lake in New York.
Have a great weekend.
END
