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Quest Means Business
Macron Says He Wants to Work on a New Deal with Iran; Trump: Kim Jong-un has Been Very Honorable; Toronto Suspect Minassian Faces 15 Counts of Murder; Six Pakistani Police Officers Killed in Suicide Attack; Glamour Magazine Looks at Women's Relationship with Money; Streaming Becomes the Biggest Money Maker for Music Business; Love and Bananas Documentary Shows Plight of Elephants. Aired 6-5p ET
Aired April 24, 2018 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICHARD QUEST, HOST, QUEST MEANS BUSINESS: The Dow is off the lows of the day, but it's still a hefty loss of one and three quarter percent. Though
your hour -- it is time -- and that is what you call an aggressive gavel. John Tuttle liked it, an aggressive gavel that's brought trading to a close
on Tuesday, the 24th of April.
Tonight, April gains are gone. The Dow through this streak has its roughest day yet. Next, we make a deal. Emmanuel Macron wants to work
with Donald Trump to redo the Iran deal. And the Facebook rulebook, the site reveals what you can and can't post and does so for the very first
time.
I am Richard Quest, live in the world's financial capital, New York City, where of course, I mean business.
Good evening and welcome. The early gains turned to a route on Wall Street as bond deals spiked above critical level and companies and warned of
trouble ahead. The Dow Jones Industrials closed as you saw just a second or two ago. They fell 422 points, a loss of one and three quarter percent
and briefly, once again, the Dow was as we described as a correction.
The Industrials, raw materials, the tech shares were the worst affected.
Now, if you look at the Dow 30, you see an extraordinary sort of day. 3M which is down here at the bottom lost nearly 7%. 3M is responsible for the
best part of 7% of a hundred points on the Dow's losses.
And one of the heaviest weighted in the Dow that is why. Interestingly, Caterpillar of course -- Caterpillar which at the beginning of the session
had been way up here as the best performer in the Dow after a warning about rising steel costs, Caterpillar slipped its way all the way down.
And indeed, that warning from Caterpillar on rising steel costs also took other major users of steel. For example, like Boeing down, Coca-Cola had
numbers that were good, but not brilliant. They were down. UT was down.
CNN's Paul La Monica has been tracking all of those. There was no single reason though, guru for the Dow's fall, which started -- I mean, the market
opened up, but the fall started at around 10:30 to 11.
PAUL LA MONICA, CORRESPONDENT, CNN: Yes, I think you already pointed out the Caterpillar warning that maybe the first quarter profit margins might
be as good as they are going to get for the year. That spooked people. The 3M numbers and their guidance, they were not very good at all. That
also had a lot of people nervous and then all (inaudible) components.
(CROSSTALK)
QUEST: Just a bit (inaudible), does it justify 7% fall? For 3M?
LA MONICA: For 3M, perhaps, because their outlook did come back down to earth and I think a lot of people are nervous about what is going to be
happening. Caterpillar, you know, think about all of these companies and how much business they do with China as well.
There are continued worries about the tension between the US and China regarding trade, that is definitely I think starting to factor in those as
well, but there are other Dow components that had less than great numbers also that you know spooked people, Travelers, the big insurance company,
their results were not factored and even Coca-Cola which finally reported an actual gain in volume for Diet Coke after seven-plus years of falling
sales, people looked at what the company had to say and they are worried that price cuts might be one of the reasons that their sales were up even
though they have all of these splashy new flavors too.
QUEST: Okay, on the question of bond deals. The bond yields rose to some 3% and the significance of that today.
LA MONICA: It's the first time in more than four years that that has happened and I think any time you get bond yields above a certain critical
psychological threshold, people start to wonder, "Is this going to be a reason for consumers to cut back on spending?"
QUEST: But why? Why is -- I mean, sorry for interrupting you.
LA MONICA: No, go ahead.
QUEST: Three is supposedly the number where investors start this rotation. The last time we saw it was some five years ago in 2014 and rising rates
always affect all -- rather interest rates.
LA MONICA: Of course. Yes, they are going to impact consumer spending. They are obviously something that CFOs and other financial type, big
companies have to factor into their business models with regards to what is going to happen to earnings and demand and their borrowing cost and what
have you.
I think the thing now, Richard, is that we just haven't been at this level for several years. So, any time you reach a multi-year high of something,
people start wondering what is that going to mean, and maybe they're obsessing too much...
QUEST: Well, because the high point was 4.7% or 5%, right about those -- but, stay with me...
LA MONICA: Yes, sir.
QUEST: You're not going too far. Joining me from New York Stock Exchange, Teddy Weisberg is President...
[16:05:16]
QUEST: ... of Seaport Securities, joins me now. Teddy, what was the factor from you on the floor of the exchange today. Why did we see from
your point of view this downturn at around about 10:30 this morning?
TED WEISBERG, PRESIDENT, SEAPORT SECURITIES: Well, I think they're probably a couple of reasons. Number one, I think what the reversals today
told us, you know, you could pick the earnings apart, starting last night with Google, but unbalanced. The earnings were quite good.
Yes, the guidance in some cases was a little weak, and I think the selloffs, the big reversals in the individual stocks and in the Dow is
simply telling us that we're at a level where these stocks are pretty much priced to perfection and there is absolutely zero tolerance for anything
that even smells like something that is disappointing.
And the flipside, Richard, interestingly enough was actually GE, which is the stock we happen to own and have been suffering with for like a lot of
other folks for a long time, but GE reported a couple of days ago, I mean the earnings were okay, but the stock actually acted pretty good today and
has acted well since they reported because that is just the flipside of what we saw with the Triple M or a Caterpillar in that a lot of the bad
news in GE and the stocks down about 40% in the year is already priced into this stock.
So, I think you know, you have two stocks that's one stock at one extreme and a group of stocks at another, both for whatever reasons priced to
perfection, but for different reasons.
QUEST: Teddy Weisberg at the Stock Exchange. Teddy, thank you. Paul is still with me. Paul La Monica, the price to perfection that Teddy is
talking about, just remind -- it's a good moment to remind you, the idea that what the -- in the share price, there is an implicit element for
future earnings.
LA MONICA: Exactly. Companies have to not just beat estimates. They have to sometimes beat them by a wide margin and raise their outlooks to justify
the price earnings ratios that these companies are trading at and I think, you know, Teddy mentioned Google, I think that's a great example.
I am a little mystified that Google sold off so sharply today because people are nervous that they are going to be spending aggressively on new
initiatives and hiring more people, that's what Google has done since they famously said don't be evil and don't worry about what Wall Street thinks
in their IPO filing almost 15 years ago, so why are people surprised that Google is all of a sudden going to still want to spend a lot of money on
new products. I don't get it.
QUEST: And earnings per share? And price earnings per share -- you're talking about that on the next...
LA MONICA: Yes, sir.
QUEST: I think I can feel, guru La Monica -- thank you. A busy day of diplomacy to the White House. Emmanuel Macron of France -- President
Macron says he wants to fix the multilateral nuclear agreement with Iran.
The French President will be followed by Angela Merkel later this week and possibly, Theresa May. They are all trying to salvage the deal that Mr.
Trump today called insane and ridiculous. Rhetoric, by what actions he is likely to take is less clear.
The President told reporters (inaudible) that he will extend by May 12th deadline or not. Other things where billions of dollars in corporate
investments at stake, as Macron admitted to say the deal does need some updates.
(START VIDEO CLIP)
EMMANUEL MACRON, PRESIDENT, FRANCE: (Through a translator). For a number of months, I have been saying that this was not a sufficient deal, but that
it enables us, at least until 2025 to have some controls over their nuclear activities.
We therefore wish from now to work on a new deal.
(END VIDEO CLIP)
QUEST: Now, the French businesses that move into Iran as sanctions ended are now watching their investments nervously. You remember, when it
happened, these companies were very quick.
For instance, Iran agreed to buy 118 Airbus jets. Cujo started a joint venture to manufacture in Iran. Renault's deal is even bigger. I beg your
pardon, Cujo is over there. Renault's deal is even bigger. We've got Total who signed a $2 billion gas deal. Total's Chief Executive told John
Defterios, they may have to rethink.
(START VIDEO CLIP STARTS)
PATRICK POUYANNE, CHIEF EXECUTIVE, TOTAL: However, we can do the deal legally. It requires a legal framework and then we will proceed. If it
cannot do that for legal reasons because the chance of dealing with sanctions, then we have to revisit it.
(END VIDEO CLIP)
QUEST: Joining me now from Paris is Sophie Pedder. She is the Bureau Chief for "The Economist" and her book on President Macron, "Revolution
Francaise" comes out in June. Good to see you, thank you.
As you watched today the -- not just want they said, but the body chemistry between the two -- the hugs, the dandruff removing, the clasped handshakes.
What did you make of it?
SOPHIE PEDDER, BUREAU CHIEF, THE ECONOMIST: I mean, it's extraordinary really, isn't it? In some ways...
[16:10:16]
PEDDER: ... it's not that much of a surprise. You know, we'll remember last year when Trump came to Europe and he got a knuckle-crunching
handshake from Macron. It was their -- that was their first contact and then, there was much sort of touching and feeling going on, on the
shoulders (inaudible) when he was here for the Bastille Day Parade.
So you know, they clearly established this bizarrely warm friendship given that they come from absolutely opposite sides of the political spectrum,
and there it was on display even more today in Washington, so surprising yes because of the place that each of those Presidents come from, but you
know, it's not the first time we've seen it.
QUEST: There was an element of refreshing honesty though today where you have President Trump being brutally frank about what he thinks of the Iran
deal and how he wants to get rid of it. Standing next to a man who approves of it. I mean, they didn't try to hide the fact that they don't
agree on this.
The issue is whether they can renegotiate it.
PEDDER: Well, I mean the choreography is interesting, isn't it? You know, they do come from absolutely different starting points. Macron is doing
everything he can to try and salvage this deal and to hold it together and stop Trump for tearing it up.
Trump is, as you said, he was violently critical about it right in front of him. At the same time, you know, I think there is the first time today,
some signs that there may be a way of moving forward that can you know, help Trump to save face, but also Macron to show that he is a world leader
capable of having some real influence for all of those touchy feely gestures that he keeps making towards the American President and vice
versa.
So, you know, he needs results, Macron and if we can get something together, whether it's some form of, you know, as he put it, complementary
deal on other issues that weren't in the original 2015 agreement, then you know, that would be to his credit.
QUEST: How is it playing for the French people? Now, I remember when Theresa May was the first leader -- excuse me -- to visit Donald Trump, she
took a lot of criticism at home.
In Europe, largely, in many quarters, Donald Trump is not popular. Will Macron be fated or worried that the public will approve or otherwise of his
closeness to Donald Trump?
PEDDER: I think the French at the moment are remarkable tolerant of all of these. You know, as you said, I mean, you can't even imagine, Donald Trump
couldn't even land on British soil at the moment, whereas in France, he was welcomed or at least tolerated last year and this trip is going down
reasonably well.
I think that you know, Macron is -- he has got a -- he was elected early last year. He has got a fresh mandate. He is sort of young and he is
giving the French people a sense that their country counts again and that matters a lot to France. You know, the sort of notions around Europe that
goes down terribly well.
But, but, but you know, the important thing is he has to get something in return, so I don't think that tolerance is infinite. The French public
opinion will not just let him go with this unless he can show that he's got something back.
QUEST: And let's talk about what he might get back on the question of trade. Have a listen to President Macron and Bruno Le Maire, both talking
about trade.
(END VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: The trade with France is complicated because we have the European Union, I would rather deal just
with France. The Union is very tough for us. They have trade barriers that are unacceptable. Our farmers can't send their product into the
European Union easily as they should and we accept their products, so we have to make a change.
BRUNO LE MAIRE, MINISTER OF ECONOMY, FRANCE: We do not want to live under the slate of a kind of sword of Damocles hanging over our European heads
waiting for the decision of President Trump. We cannot live like that. We are allies. We cannot live under the slate of an ally like the United
States. We want a full and permanent exemption.
(END VIDEO CLIP)
QUEST: There's the problem isn't it? Because President Trump, no matter how much is in a bromance with Emmanuel Macron, he can't give Macron the
exemption on steel tariffs or indeed anything else because that's an EU matter and Trump is vehemently critical of the EU.
PEDDER: Well, that's Trump's problem. I mean, it's absolutely impossible to have a deal with France which isn't a deal with the European Union and
they are united, all of the European countries on that point and so there is no tariff with France that isn't a tariff with the EU.
So, that is such a fact and Macron is a very pro-European. He believes passionately in the European projects and in the 27...
[16:15:16]
PEDDER: ... plus the UK which is leaving -- the 27 standing together on this, so he's fighting for Europe on that front, not just for France.
QUEST: In your view, does this relationship eventually sour? Donald Trump has a history of not exactly being loyal to those who supported in him. In
your view, does this go wrong?
PEDDER: Well, you know, I don't think President Macron is naive about it either. I think that he will try and keep it going and make what he can of
it, and if it does go sour, then he will probably say to himself, "At least, I tried." I don't think that he -- I don't think that he has a sort
of false naive hopes about what he can achieve, but I do think, you know, he doesn't see any other European leader who has managed to establish that
kind of link and he does seem not just as a French leader, but very much a leader for the whole of Europe.
So, you know, I think he wants to make the most of what he can and get what he can out of it. And if it sours, well, then it sours, you know, but he
is trying the same with other leaders, too. You know, he's doing exactly the same with Vladimir Putin who he is visiting at the end of May in
Moscow, that's the plan at least and you know, he will try and get what he can and he is not naive about what he won't be able to get.
QUEST: Sophie Pedder who is in Paris for us tonight. Thank you. For the first time, Facebook is telling us in great detail what is banned and what
is not -- what you can and can't post and there may be some surprises. It's after the break. It's "Quest Means Business" (inaudible).
Transparency hasn't always come easy to Facebook. Now, the company is publishing its internal rules about what's allowed and not on the site.
It's called the Community Standards and they are highly specific. So, in the case of cannibalism are okay, if accompanied by a warning and
restrictions for younger users.
Breasts are typically banned except in images depicting an act of protest, and hate speech is allowed during discussions about hate speech or in posts
making fun of hate speech. It's just not allowed as hate speech in its own right.
Over at YouTube, the site says in the last three months, it has taken down more than eight million videos for violating its guidelines and
importantly, most of those were flagged by machines not by humans.
So, let's talk about this with Siva Vaidhyanathan, the author of "Anti Social Media: How Facebook Disconnects Us and Undermines Democracy." He
joins me from Charlottesville. Sir, good to see you with us. Thank you. The new rules that they are putting in place or guidelines, they are
obviously badly needed, and yes, I guess, you know, look I could -- with any guidelines, we can nitpick them up the wazoo...
SIVA VAIDHYANATHAN, AUTHOR: That's right.
QUEST: But as a body of...
[16:20:16]
QUEST: ... work, with an intent to improve, does it succeed?
VAIDHYANATHAN: Well, this of guidelines has existed in various forms for the duration of Facebook. This is the first time that Facebook has been
open about the guidelines with its users. There was a leak of a set of guidelines about a year ago, "The Guardian" newspaper was able to get a
hold of the earlier version of the guidelines.
Look, these guidelines are under constant revision as new behaviors, new expressions come up around the world. Facebook has a team of people who
examine the various issues and try to come up with general guidelines because they have thousands of people whose job it is to screen some of the
most difficult and troubling and disturbing content in the world.
And Mark Zuckerberg said that he wants to hire 20,000 more people to use these guidelines to determine what can be on and off Facebook.
QUEST: On that 20,000, that's a Herculean task to add that to the existing ones and I mean, is it feasible. Obviously, you can hire them, but the
quality that you end up with and the way in which...
VAIDHYANATHAN: And can you keep them?
QUEST: Yes, quite right.
VAIDHYANATHAN: I mean, can you keep them? I mean, this is one of the worst jobs in the world, if you can imagine, I mean, constantly for your
entire work day, being confronted with images of nudity, of perhaps child pornography of violence of all sorts, of terrorist threats.
There are so many different ways that you know, the variety of human cruelties that we express as a species all end up on Facebook in some way
or another. Fortunately, much of it is screened out, but much of it does last. And remember, Facebook has to handle the expressions of 2.2 billion
people in more than a hundred languages.
This is an impossible task.
QUEST: I mean, that's really the core point. That no amount of moderators, you would need an army -- well, you've got an army of them, but
even then, it's going to have to rely on algorithms and AI to weed out that what you don't want.
VAIDHYANATHAN: Well, so let's remember a couple of things. Moderation -- some moderation is better than no moderation system nor a set of standards
will ever be perfect and ever make everyone happy.
But it's better to be transparent than opaque about it. The dream of artificial intelligence or algorithmic screening or machine learning, you
know, if that can even occur, that's five or 10 years down the line.
There's going to be a lot of damage done to Facebook and to people who use Facebook in that time, and let's also remember that what we think of as
artificial intelligence is basically machines that train themselves on data that already exists. So, the chances of them creating an artificial
intelligence engine that does this stuff is actually rather slim.
QUEST: Siva, do not worry yourself, sir. Do not worry -- you are getting yourself excited. Do not. GDPR is coming to the rescue. The new gold
standard for data privacy imposed by the EU on all countries and companies where EU citizens will be caught up.
Now, you'd agree GDPR is the new gold standard?
VAIDHYANATHAN: I think GDPR is a wonderful move forward. We have a lot to learn about how it will be implemented, how it will be enforced, how
European courts will interpret it. We also have a lot to learn about Facebook and Google with all of their power manage to twist the law and
maybe capture it for themselves. That's a possibility.
But GDPR and the process of filtering difficult content from Facebook and Google, they are very different issues.
QUEST: Good to see you, sir. Thank you.
VAIDHYANATHAN: My pleasure.
QUEST: Donald Trump's pick to lead America's second largest government agency of his administration looks like it's getting an increasingly rocky
confirmation process. The President nominated his own physician, Ronny Jackson, actually, and for Jackson to be the next VA Secretary.
Now, claims of excessive drinking and a toxic work environment under Jackson's leadership holding up the confirmation process. Juana Summers is
in Washington. This is interesting, so his nomination is being held up by personal accusations rather than professional accusations that the job is
extraordinarily big and complicated and this man has no experience of running an organization, well, anything even similar to the VA.
JUANA SUMMERS, CORRESPONDENT, CNN: Hi, Richard, so here's what we know. Members of the Senate Veterans Affairs Committee are looking into those
allegations you mentioned, and they are coming from whistleblowers. Those are former staffers who worked in the White House Medical Unit with Ronny
Jackson, the President's pick to lead the Department of Veterans Affairs.
Now, I spoke to two of those former staffers and they told me that they have related to the Committee that under Ronny Jackson's leadership, there
was a toxic environment within the White House Medical Unit.
They also said that Jackson drank excessively. Separately from those whistleblower accounts and those people that...
[16:25:16]
SUMMERS: ... I spoke with. The Committee is also looking into allegations from other sources that staffers are speaking with regarding how
prescription drugs were prescribed within the White House Unit as well as some type of report that we are seeing about a climate report about
behaviors within the agency.
Now, let's keep in mind, members of the Committee are very careful to say they have not been able to substantiate these allegations. There is not a
whole lot of documentation, but it is clear today in Washington that this has certainly thrown this whole nomination on its head. We actually heard
first from the White House today about how the President is reacting to these new latest allegations?
(START VIDEO CLIP)
TRUMP: I don't want to put a man through a process like this. It's too ugly and too disgusting. So, we will see what happens. He will make a
decision. As far as experience is concerned, the Veterans Administration which is approximately 13 million people is so big, you could run the
biggest hospital system in the world and it's small time compared to the Veterans Administration, so nobody has the experience.
(END VIDEO CLIP)
QUEST: He says nobody has the experience and he makes the valid point, the President, that you know, that it's a large hospital, a large hospital
city, but at least that would be some experience. To my understanding, this admiral has no experience of policy making at the highest level, which
is what this is all about, policy making.
SUMMERS: Richard, that's absolutely right. And I think it's important to note that the person who comes into this job, yes, they are going to take
over a sweeping medical system, but the VA does more than just provide medical care for veterans. There are also a lot of technology related
issues, a lot of issues related to benefits that they are stepping into.
I think that's why we heard lawmakers not just Democrats, Republicans as well when the President named Ronny Jackson raising questions that while
they saw him as a well-regarded physician, someone that served in three presidential administrations as a White House physician, they wondered if
he had the right management experience and if he had the right policy views because virtually every lawmaker that I spoke to when he was named said
they didn't know where he stood on some of the most critical issues facing this country's veterans.
QUEST: Juana, good to see you. Thank you.
SUMMERS: Thank you.
QUEST: It's like a wet day in Washington there. After the break, almost two-thirds of women say they are not financially independent, which is why
-- and pretty interesting, "Glamour" magazine, we've got the new editor-in- chief of "Glamour" who tells us why their latest issue highlights some women's complex relationship with money.
Hi, I am Richard Quest. There is of course a lot more QUEST MEANS BUSINESS in just a moment. Where life is but a stream for the music industry,
making more now money from just streaming than anything else.
The last and new editor of Glamour Magazine, why it's time to redefine women's relationship with money as we continue tonight. You're watching
Cnn and here on this network the facts will always come first.
During a press conference with the U.S. President Donald Trump, President Emmanuel Macron of France says he's looking forward to working on a new
deal with Iran, one that could address shortfalls in the agreement.
Mr. Trump indicated he could strike a compromise after calling the Iran deal insane and ridiculous. Donald Trump said North Korean dictator Kim
Jong-un has been in his words very honorable as the two leaders prepare to meet.
Mr. Trump said he's looking forward to meeting Kim very soon, though he warned that no agreement is guaranteed.
A short while ago, Toronto police said Alek Minassian rented a van right before running attack that happened on Monday. They said he also boasted
of encrypted message on Facebook. Minassian facing ten counts of first degree murder that killed ten people and 13 counts of attempted murder.
Six Pakistani police officers have been killed in suicide attack, the bomber ramped his explosives and laid in motorcycle into a police van in
the city of Quetta. Pakistani Prime Minister has vowed to bring those behind the attack to justice.
Now, perhaps not my normal reading on a Tuesday morning, but it was fascinating to read the May edition of Glamour Magazine, the first issue of
the relaunched magazine. Glamour set out to redefine women's relationship with money, how they earn it and how they spend it and how they save it.
Now in recent time, a survey found that just 41 percent of women reported being financially independent, 85 percent say they don't own stocks, at
least not that they're aware of, and most women worry about their finances a great deal, while 63 percent reported stressing about money at least once
a week.
I'm joined by Samantha Barry; Glamour's new editor-in-chief, former head of CNN Social.
SAMANTHA BARRY, EDITOR-IN-CHIEF, GLAMOUR MAGAZINE: Yes.
QUEST: Good to see you.
BARRY: Good to see you over here --
QUEST: Nice to have you, back so soon.
BARRY: I know, so soon.
QUEST: Why did you choose this issue of money as your lead, as your first, your launch?
BARRY: I -- because honestly, I don't know if there are that many media companies that are talking to women about money. And women have a
complicated relationship with money, we earn less, we save less and we live longer.
So that doesn't add up. And I think one thing that came across as we put this issue together was this lack of transparency especially for younger
women around the conversations around money. So --
QUEST: Do you want that conversation in the sense of, they're interested in it, they need to know about it, everybody does, so it's not a gender-
specific issue in that sense.
But they come to magazines, personally a bit uplifting and a bit different and a bit of exotic and a bit of a glamour literally, figuratively, not to
be told that you're not earning that much.
BARRY: I think one of the things they like -- they like a mix of content, so there's obviously a great fashion reading there, but some of this -- the
money content, people have reacted amazingly --
QUEST: Really --
BARRY: Well to it online, and one of the concept that we talk about is a full-backed fund. We call it something else in the magazine, but I won't
say it on air.
QUEST: People actually like it.
BARRY: And it is this concept that you need three or four months of buffer in order to leave a bad relationship or a non-healthy relationship in order
to leave an unsatisfying job.
And women aren't really being told to put that money away and have that full-backed fund. One of the other things I came up with was super
fascinating and it was phone conversations I've had with my colleagues here and other places is a lot of women are reluctant to talk about how much
they earn.
And either with colleagues or with friends I came across --
QUEST: Yes --
BARRY: But when they do, they do have the knowledge of who is making what money at their level, it comes with so much power. So we talked about the
salary with what network which is becoming more and more popular.
Whether it's slack groups or text message groups where people are being very honest about how much they're making --
QUEST: We --
BARRY: For the job that they do.
QUEST: We classically saw that of course in the recent diversity in pay issues there with the BBC in the U.K. where female women presenters who
simply did not know, suspected, but didn't know they were being paid -- each other.
On this question though of how do you continue this discussion because obviously, you don't want to make that big issue a Glamour version of the
"Financial Times".
BARRY: No --
QUEST: But at the same time, you don't want that to just go, do you?
BARRY: No, money is a big content area for us, and while some of the statistics that you talked about earlier --
QUEST: Yes --
[16:35:00] BARRY: A little bit disappointing, there's also all these almost untold stories around women and money that we think Glamour is in a
great place to talk about. One of their -- my favorite piece in Cnn was the women of cryptocurrency.
And we started talking to all of the women behind --
QUEST: Yes --
BARRY: Cryptocurrency who have felt like they haven't got as much maybe press as the men, and they --
QUEST: I'd agree, I'd agree --
BARRY: Yes, and they talked about what was really interesting and came out with the conversation with them is that they talked about the old financial
system was built by old white men, they do not want the new financial system to be built by all white men.
Because if you do not have people, either women or people of color helping build a new system, it will of course be bias against them.
QUEST: I just want to find it. You have to calculate it here, don't you?
BARRY: Yes, we have a cost-per-wear calculator --
QUEST: A -- what's it called?
BARRY: It's the cost-per-wear calculator.
QUEST: Cost-per-wear calculator.
BARRY: So it's online --
QUEST: Which I think is --
BARRY: It's going to help you justify spending all the money you want and something special. So it's doing the -- it's doing the math for you on
let's say you want to buy a Winter jacket --
QUEST: Or for something in Pinstripes(ph) --
BARRY: Exactly, what do you want to buy? How much is it? How often are you going to wear it? How many seasons are you going to wear it for and what is
the dry cleaning? And then we can tell you what your cost-per-wear is.
QUEST: And what's a good cost-per-wear?
BARRY: Look, I think anything around $4 or $5 are -- anything less than a cup of coffee is a really good, if you're spending money on something
quality as a cost-per-wear for me.
QUEST: And you realize in the next two or three weeks, I'm immediately going to go and work out about this suit cost less.
BARRY: Exactly.
QUEST: It's a cost -- I know it's a greater -- listen, congratulations --
BARRY: Thank you --
QUEST: And not only on being the editor -- the new editor-in-chief, but also tackling one of the most -- I always say when I'm given 12 -- I will
say, the most important things in life after fresh air, food, sex, how you earn your money and how you spend it.
BARRY: Very true.
QUEST: Good to see you.
BARRY: Thank you so much for having me, thank you --
QUEST: Come back again, please, and talk about Pinstripes(ph). Thank you. The internet nearly condemned record labels to death. Now streaming and a
little help from Taylor Swift have officially rescued the industry, after the break.
(COMMERCIAL BREAK)
QUEST: It is official, streaming has apparently saved the music industry.
(MUSIC)
QUEST: She is the best skeptic. Now global superstars like Taylor Swift are very much onboard and services like Spotify and Apple Music are the
biggest money makers for record labels.
According to IFBI, the overall -- the overall music market grow 8 percent. It's the third straight year of growth and that comes after 15 years of
decline. There are 176 million paying subscribers on streaming services.
And streaming has filled the gap after dramatic fall in downloads and physical sales that the industry in the ledge. Larry Miller is here;
director of music business at NYU's Steinhardt School.
[16:40:00] Something tells me, Larry, that you are not surprised by these statistics. You thought it was just a question of when?
LARRY MILLER, DIRECTOR OF MUSIC BUSINESS, NEW YORK UNIVERSITY'S STEINHARDT SCHOOL: I am not at least a bit surprised and it sure took long enough,
but it is exciting to work around music companies today in 2018.
Not so much the case for --
QUEST: Well, wasn't it inevitable? I mean, if you think about (INAUDIBLE), you get for records to cartridges, to cassettes, to CDs, to the other form
of digital and then inevitably, one streaming became available, you were going to have it.
Once we've got over the concept of not owning it.
MILLER: Yes, exactly right. You know, the idea of paying for access with either our attention and the form of watching ads or paying for a monthly
subscription is an idea whose time has come.
QUEST: If that is the case, then it just gets bigger.
MILLER: Yes --
QUEST: I mean, Spotify launched on the Exchange, they've had a good -- they've had a good IPO and a somewhat unusual circumstances, but it just
gets bigger.
MILLER: Yes, it gets I think quite a lot bigger, there's a long way to go in the developed markets and as well in the developing world, we have I
think a very long way to run with streaming music.
QUEST: The concept though is fine, the practicalities work, now there's bandwidth, but who wins and who loses? In the sense that the artists are
very much -- and you know, they're doing it, but they do believe that they're getting a very short end of the stick.
MILLER: Well, I think it depends on what kind of an artist we're talking about. Now, in streaming like in most hit-driven businesses, there's you
know, a kind of a barbell distribution where the most popular artists generate their greatest amount of streams.
QUEST: But we had, Larry, we had Shelly Palmer on the program recently from digital, and he was making the point that streaming is financially
complicated in terms of rights, publishers, who gets what, bits and where.
And the artists, many of them don't feel that they are being paid correctly for the amount of streaming that's taking place.
MILLER: I would argue that in the world that we're living in today, there's far greater transparency in the way that most artists are accounted
to and get paid than ever before in the history of recorded music.
QUEST: What comes next?
MILLER: Well, even more ubiquity with streaming, I mean, we would love to surpass the size of a recorded music business than we had in 1999, but we
still have a long way to go.
QUEST: Right, but we had this discussion and debate about will you have more than one streaming service? Will you pay for Apple, for Google and for
Spotify and Pandora of course.
Will you pay for them all or one or two?
MILLER: I mean, besides, people like you and me who may pay for --
QUEST: I think for once --
MILLER: For more than one --
QUEST: Actually no, I'm on the free-b one, I'm still on the free-b service.
MILLER: Well, when are you going to pony-up for the 999? But I guess that's the point for most people.
QUEST: How many of you -- how many of you got?
MILLER: I pay for two, but --
QUEST: Why?
MILLER: Because I need to see what everybody is doing, and so do you. But I think the point is that we have a long way to grow in streaming, but for
most people, they'll pay for one service and really one service only.
QUEST: I'll tell you what? Don't tell anybody, you just give me your log in details.
(LAUGHTER)
Good to see you.
MILLER: I'll show you my ID.
QUEST: That's very clever --
MILLER: Yes --
QUEST: Got -- I could just hear, no! We were just joking, I promise you -- where were we? We'll be back in just a moment after the latest in our
series with TRADERS.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: This is the story of how a third generation toy merchant built a million-dollar business around the world, one block at a
time. Meet Timothy Scott Stewart; a U.S. native who sells toy bricks to over 20 countries around the world from his home-base in Asia.
TIMOTHY SCOTT STEWART, ENTREPRENEUR: It's the best job in the world, I get to play with toys all day.
UNIDENTIFIED MALE: In 2006, he founded Unit Bricks, creating toy bricks small enough to fit in the palm of children's hands made of sustainable
wood.
Studies have proven the benefits of brick play in early childhood development. Both Albert Einstein and Architect Frank Lloyd believed it
helped them understand complex 3D structures at a young age.
STEWART: I was selling toys in the United States, and many of my mentors, the teachers that I will go to would explain to me about the importance of
block play.
It's educational because the mathematics that you're working with, you'll see the lines, you can feel them, they stuck your learning ways and
measures, you're learning balance, you're learning gravity.
[16:45:00] It allows for a fluid environment for a child to keep creating and build the world that they want.
UNIDENTIFIED MALE: Shortly after launch, major educational supply company in the United States began stocking Unit Bricks and sales began to soar.
STEWART: We're a million plus and growing.
UNIDENTIFIED MALE: The retail value of a traditional toys and games industry is projected to reach over $94 billion by 2021, or $25 billion of
that is expected to come from the age of specific region.
While store-base retailing accounted for the $67.5 billion in sales in 2016, online sales have more than doubled since 2011, approaching 14
billion in 2016. And online sales for Unit Bricks are growing, he says, accounting for 20 percent of the company's revenue and allowing for a
flexible working environment.
STEWART: My work is wherever I am, I have my laptop or my iPad and I'm able to do my job.
UNIDENTIFIED MALE: Stewart says Unit Bricks can now be found in over 20,000 classrooms in more than 20 countries.
STEWART: Our world provides all the inspiration you need. You see bridges and create them, skyscrapers, the physical world around us is our
inspiration. The ability to create a design thinking environment for a child is more possible with Unit Bricks than other toys.
They're building structures and the world they see around them.
UNIDENTIFIED MALE: Giving a whole new meaning to global reach and making trading with toys look like child's play.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
QUEST: The world is in the midst of a conservation crisis. Last month, reported the death of the last male northern white rhino. Our next guest
want to ensure the world's elephants don't suffer the same fate.
It's a new film and their film, it's releasing this week, it tells the story of a Hollywood actress who decided it's time to take action.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: They want me to put everything under carpet, I will speak, even my life will be simpler. He'd never let them be free, this is
the first time.
UNIDENTIFIED FEMALE: So you're breaking the chain.
UNIDENTIFIED FEMALE: Yes, except U.S. have vote(ph) no.
(END VIDEO CLIP)
QUEST: Ashley Bell teamed up with the conservationist Lek Chailert and their film puts the spotlight on Asian elephants. In Africa, poachers
typically kill elephants for ivory whiles in Asia, large numbers are captured from the wild where they are put to work.
Thank Chailert and Ashley, they'll both join me now to discuss their new film. And first of all, as -- tell me about the work that you do and where
it is.
LEK CHAILERT, CONSERVATIONIST: Yes, my work is, I have a sanctuary in Northern Thailand and catching(ph) my -- and this me rescue many elephants
from abuse and over work to start our project.
[16:50:00] And we have now rescued more than 200 elephants, but at our sanctuary, we have about 85 elephants in there and --
QUEST: And they love you.
CHAILERT: Yes, and mainly, they're not going there right at our project. More than 80 percent of them, they arrive with huge mental problem, and
they have a lot of blood(ph) and a lot of handicap.
QUEST: Why did you get involved? Why was this significant?
ASHLEY BELL, ACTRESS: A very close family friend David Casselman owns the Cambodia Wildlife Sanctuary, and I heard for ten years, they were looking
to rescue elephants. It took that long because there're some few Asian elephants left.
And when they found them, they invited me to come watch the release of them onto the sanctuary. I thought this was going to be a short happily ever
after story. When I got there, I saw the elephants were in horrendous condition, they were covered in excessive scars.
There was illegal logging and poaching happening on the land.
QUEST: Did you see lack with the elephants?
BELL: I saw lack and I saw Lek's footage of what it took to get the elephants there. It was the most hopeful, harrowing, victorious thing I've
ever seen, and I said that, that's my story.
QUEST: Have you seen the way she -- she should have happily made some wall called rounder.
CHAILERT: Yes.
QUEST: Lying on the floor --
CHAILERT: Yes --
QUEST: As if it's nothing at all. No fair.
(LAUGHTER)
CHAILERT: Yes, my friend and after I rescued them and put them into the project, they tossed me and they received the love and they know that at
least they would never hurt me.
QUEST: What do you hope comes out of this, out of this film? Because let's be clear. I mean, one can make a film, elephants are intrinsically
gorgeous animals. When I visited, they -- you know, they're just amazing animals.
But you can't just be doing this to do good, you must want something out of this.
BELL: I hope people aren't paralyzed when they find out that I'm not the cause, I hope they make the choice to do one thing, Lek always said, the
key to saving the species is education. And I think by getting Lek's work out, getting both undercover footage she has and getting the way she works
with love and positivity and hope, getting that message out.
I mean, already it's been really translating to the audience as we've showed it too.
QUEST: OK, so you get the message out --
CHAILERT: Yes --
QUEST: But what's that message? What do you need? Do you need financial support? Do you need political support? Do you -- I mean, the goal in your
view, Lek, is --
CHAILERT: The single day, the Asian elephant gets abused, gets killed, gets hand, gets pushed, the wild elephant get -- grab the baby from -- away
from the matter.
Just train them -- go to the industry, many of the matter elephants and wild elephants get killed for the skin, drag the skin out to make a
(INAUDIBLE) and many of them have -- take away from home.
So what is -- I really want to spread the word and let the word know that at least when you come to traveling around the world, many trickle -- want
to put right elephant, but that's abuse.
QUEST: OK, the governments in Thailand and in Indonesia and all the other countries, do governments know this and to a large extent, there are laws
in place to prevent it, they're just not followed, people just break the law.
CHAILERT: Some countries doesn't have animal rights and some countries never have animal law, but we need education to let the tourists to
understand that this is -- when you're traveling, you have to travel with care, you can't use your money to support others especially the animal.
QUEST: That is crucial, isn't it? Because westerners, for want of a better word travel, tourists see these elephants -- they're all cute. Let me go
and whatever, have a picture taken next to an elephant that might have been shackled for hours, for days, for weeks.
BELL: I can tell you for the course of doing this documentary, people said I love elephants, I rode one. I love elephants, I bought an elephant
painting, but when you know better, you do better.
And when people see you, what an elephant has to go through to be broken for entertainment, you cannot humanely ride an elephant.
CHAILERT: They're born wide. You know, they're not born to be entertaining -- entertain for us. Every time, many people have said, they
ride elephant just only one hour, only see the elephants sometimes.
But behind the scene is a cruelty, they're soaked with blood, they can't just walk out from the wild and pending their --
QUEST: I will try and obviously, we hope anybody who's got any -- can help in anyway will do. But I want to end on an optimistic note because the
opposite side of that coin, Lek, is when you rescue them and you see them in the herd at your place basically, frolicking around you.
CHAILERT: Yes, you know, Richard, before this elephant come, many of them drag the baby away from them.
[16:55:00] Some of the elephant mother, the pregnant give birth and they take the baby away from them, bring the baby 1 year-old and take the kid
and the kid -- then they rescue them.
They hardly know them, sell the elephant -- so, we bring them back into the (INAUDIBLE) and let them to understand and have family again, and we give
them love and let them understand this is love that our press can provide them.
QUEST: I couldn't put it better myself. Go on, take the bell -- profitable moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's profitable moment, I have said on this program many times that if you actually look at the most important things in life, they are
always really basic, get to the bottom of things. Fresh air, fresh food, sex arguably.
And then after, pretty much it's how you earn and spend your money. Note, I don't say money, money is morally neutral. It's how you earn it and how
you spend it. Which is why the Glamour Magazine is making such an important move towards women and finances is to be so welcomed.
We'll be following this one very closely indeed. And that is QUEST MEANS BUSINESS for tonight, I am Richard Quest in New York. Whatever you're up
to in the hours ahead, I hope it's profitable.
We have a week together, let's enjoy it.
END
