BUSINESS-01
People Displace in Italy's Quake; WhatsApp to Share User Data with
Facebook; Vaz: Social Media "Consciously Failing" on Extremism; Clinton
Responds to Trumps Charges of Bigotry; Conrad Black: Trump is Middle-of-
the-Road Man; Conrad Black: Trump Rhetoric Often Tasteless; Mylan CEO:
Health Care System Broken; Mylan Under Fire for 400 Percent EpiPen Price
Hike; Wall Street Down; Mylan Leads Health Care Decline; European Markets
Fall on Drug Woes; French Fashion Designer Sonia Rykiel Dies; Imported
Synthetic Hair Helps Shape African Style; U.S. National Park Service Turns
100; Park Service Has $12 Billion Backlog of Projects - Part 2>
Jarvis>
Lang >
and it follows Wednesday's devastating earthquake. There's now a limited
window to find survivors. At the village green, a tent camp is being built
to house hundreds from Sant'Angelo and neighborhoods villages. Survivors
rest in the shade, still in shock. WhatsApp made it clear that continuing
respect for privacy would be at the heart of the company even after it
became part of a much larger organization. Now though it's going to hand
over data to its parent company, Facebook. A new report from British
lawmakers says companies like Facebook and Google are not doing enough to
fight radicalism online. The head of the inquiry says, huge corporations
like Google, Facebook and Twitter with their billion-dollar incomes are
consciously failing to tackle this threat and passing the buck. Donald
Trump has turned the Republican Party on its head. He's invaded the
political world and systematically destroyed the candidacy of 16 seasoned
politicians. U.S. Senator demands an inquiry into the price of a life-
saving drug EpiPen. The chief executive of Mylan that makes it, is now
describing a broken health care system that's to blame for the skyrocketing
price of the EpiPen in the United States. The queen of knitwear has died.
For decades Sonia Rykiel's creations were literally a poke in the eye for
the design bourgeoisie. Hair extensions are not going out of style in
Nigeria anytime soon. Most of the country's synthetic is imported from
Japan. A hundred year ago today, the U.S. National Park Service was
formed. They've been described as America's best idea, 400 of them. >
Technology; Internet; Elections; Politics; Pharmaceuticals; Africa;
Fashion; Lifestyle; Death; Stock Markets; Tourism >
(BEGIN VIDEO CLIP)
HEATHER BRESCH, CEO, MYLAN: Look, we are going to continue to run a business and we're going to continue to meet the supply and demand of what's out there.
It's a complicated system. And to get in it and understand it takes time, which as you know, many people don't have the time to take the time. Our Congress, our leaders in this country need to get around the table and fix this.
(END VIDEO CLIP)
QUEST: We're very grateful that joining us is the U.S. Senator from Minnesota, whose daughter also suffers from allergies and realizes on an EpiPen.
Senator, thank you. Do you have any sympathy, Senator, which this idea or this view that it is the system that's broken and it's the system that's responsible for such a sharp increase in price?
AMY KLOBUCHAR, U.S. SENATE DEMOCRAT, MINNESOTA: Well, I would like to see systemic changes. But to be very clear, this is the first program I've been on that has had the audacity to lead with the fact that the prices for the very same product are so much cheaper in other countries. You see the same thing in Canada. I actually have a bill with Republican Senator -- I'm a Democrat -- Republican Senator John McCain to allow for the re- importation of drugs from countries that have cheaper prices, but just as safe of products. And so do I think there's systemic solutions? Yes, including negotiations for drug prices with pharma for Medicare. Including stopping companies from colluding generics and big Pharma to stop products from getting on the market that would create competition. But do I think this company did a bad thing? Yes.
QUEST: But what you did they do that was bad? When you have the chief executive saying, listen, this is the market. This is what it costs. This is how we have to do business.
KLOBUCHAR: I'm sorry, but they were the company that had this product when it cost $100. It's not like they suddenly changed the product, they made some minor changes to it, but there is absolutely no way those costs of R&D accounted to 500 percent increase on the product. There's no way you can explain why it would be selling cheaper in other countries. So in my mind they took a product that was a good product, is a good product, and then increased the price because they wanted to have more money and more profits. Their profit margin went up, Richard, from 2008 it was 9 percent. In 2014 their profit margin was 55 percent.
QUEST: Right, where men and women of the world on QUEST MEANS BUSINESS, Senator. What we're everything talking about here is price gouging, that's the name for it, isn't it?
KLOBUCHAR: Well, and unfortunately, under American laws, when a company has monopoly power -- I'm the ranking member on the antitrust subcommittee -- when a company has monopoly power and they price gouge, that in itself is not a violation of the antitrust laws. You have to show they colluded. That they signed contracts to keep competitors out of the market. Obviously, I've called for that investigation of the situation with the FTC.
QUEST: The problem is you'd have thought that since insurance companies pay much of the price for these drugs, and Medicare, Medicaid pays much of the price, but for-profit insurance companies surely should have a greater interest in lower cost of pharmaceuticals. Let's face it, Senator, we're talking about classic capitalism here. So why has classic capitalism failed?
KLOBUCHAR: I believe that you need the consumers empowered and the people empowered to see how much they're getting ripped off to get change. And ironically that's what's happening. Some of these high deductible plans, which many of us which we didn't have a plan like that, but OK, high deductible plans. They show the consumers how much these products have cost, are costing, and will cost. So that is creating pressure from individual Americans to start pushing, saying this is way too much money.
And before it was just embedded in the system, hidden in the system. So I truly believe we need more generics for competition. And our laws allow for that, but it's been slowed down. And pharma has stopped bills that would make it easier to have more competition, foreign competition, as I pointed out, and then allowing negotiation. I don't think you can believe this, the harnessing nanergy of America's seniors, right now they have no ability to negotiate. The prices are set. The VA gets to negotiate, the veterans do, but not the seniors under Medicare. That would be a huge draw for bringing prices down.
QUEST: Senator, we're grateful that you've taken the time this evening in the busy election year, to come and talk to us. Thank you.
KLOBUCHAR: Well, it's great to be on.
QUEST: Thank you. Now, we'll talk more about this obviously in the months ahead. I still got my EpiPen in case things go a bit funny. I wonder whose it is. I've got to give it back to him, because they need it more than anybody else.
Mylan's stock finished down nearly .75 percent. It was a little bit of an up tip there in the market, but down towards the end. Again, not big movements on the day. The market closed down in the red. Mylan led a decline in health care stocks and it all brought the whole market down. The Dow was off 33 points.
In Europe, the controversy over Mylan dragged down pharma across the Atlantic. And you see that the FTSE fell as drug makers saw a fall in prices. Germany ifo survey says, business morale in the biggest economy deteriorated in August. And that's why you see the largest loss in the Xetra Dax.
The queen the knitwear has passed away. Sonia Rykiel's fashion design, seen here in film, "Prot-.-porter," live on. And we will take a moment to remember the woman who changed French fashion with a sweater. QUEST MEANS BUSINESS, good evening.
(COMMERCIAL BREAK)
QUEST: The queen of knitwear has died. For decades Sonia Rykiel's creations were literally a poke in the eye for the design bourgeoisie. The woman with the bright red hair, pioneered a style. And that style as we know, is bold strips and vibrant colors. She made practical sweaters cool again. She dressed celebrities like Audrey Hepburn and Bridget Bardot. Oh yes, she turned fashion on its head and made her creations available to everybody in the high street, putting them on sale, even, in H&M. Jack Lang says, Sonia Rykiel paid an historic role in the development of French fashion. He served as France's cultural minister. He knew Sonia Rykiel very well. When he joined me on the line from the Chans de Lise in Paris, he remembered his time with the legendary designer.
(BEGIN VIDEOTAPE)
JACK LANG, FORMER FRENCH MINISTER OF CULTURE: She became a great friend. And I knew her very well when I was minister of culture. It was during the Mitterrand presidency. As the new minister of culture, I decide to give to fashion a new place in Paris and France. At that time, it was a very bad situation for fashion. And Sonia helped me to organize many events in opera, in the Louvre, in the Tuileries Gardens. She was very well engaged. Her support was very important for us. And it was really a very courageous woman. She was very brilliant, as you know. And what I can say, you know, that she has opened new ways, revolutionary ways to fashion.
QUEST: The designs that she brought out in the 1960s and '70s revolutionized fashion in many ways. How do you think they revolutionized fashion?
LANG: It was revolutionary because the use of materials, what we call tricot in French. And it was very revolutionary. And also what is important to say is that Sonia was not only one designer or fashion woman. She was also a writer. And she had for literature real passion. It was a very cultured woman. And she was at the time, as I can say, the queen of Paris. She had a great influence. And she gave help to young creators.
QUEST: I need to ask you, sir, before you go. And I want to ask you, the latest ban on burkinis on the beach in France, how big an issue is this?
LANG: It's a ridiculous situation. Sometimes behind this trial against this burkini, there is a deep mentality of certain people, a sort of hostility against Muslins. And I cannot accept. For me, every region has to be respected. Every conviction has to be respected. I agree that France offers this stupid controversy, this stupid debate.
(END VIDEOTAPE)
QUEST: The former French culture minister.
Hair extensions are not going out of style in Nigeria anytime soon. Most of the country's synthetic is imported from Japan. CNN's Zain Asher has more as part of our series, "AFRICA LOOKS EAST."
(BEGIN VIDEOTAPE)
ZAIN ASHER, CNN ANCHOR (voice-over): A beehive of activity at this Lagos factory. They're busy processing material for hair extensions. Part of an estimated $6 billion market across Africa. Here in Nigeria, synthetic hair is a very lucrative part of the industry. And it's caught the attention of international companies as far as Japan and India.
TAKU MIYAZAKI, MANAGING DIRECTOR, JETRO LAGOS: Nigeria is the biggest market for synthetic care for a Japanese companies. I'm very glad to know that the Nigerian ladies like the Japanese product.
ASHER: Most of the hair used here comes from Japan.
MIYAZAKI: Japan has a long history in trade and investment with Nigeria since its independence. In terms of the export from Japan, Nigeria is fifth destination whole of Africa.
ASHER: One of the leading manufacturer of synthetic care is the Japanese company, Kaneka. Maker of the brand, Kanekalon. Based in Osaka, Kaneka says it commands a 40 percent share of the global synthetic hair market and a 60 percent share of the African market.
Here's how it works. Kaneka sends the raw materials to local manufacturers who then process and package the end product, ready for the salons. According to Euro Monitor, women here spent nearly $500 billion on beauty and personal care in 2015. Beauty-conscious Nigerian women flocked to stylus, UGO Igbokwe's, Make Me Salon in Lagos, where he expertly attaches the fibers into their hair.
UGO IGBOKWE, OWNER, MAKE ME SALON: And she takes this out. Just like that. And we grab this. And the style has changed.
ASHER: Considered a guru in the field, Igbokwe says, he advises a number of Japanese distributors looking to take a new product to market.
IGBOKWE: First of all, one thing that will never stop is women trying to look good. That would never happen.
ASHER: And looking good will never go out of style for both the businesses and consumers.
(END VIDEOTAPE)
QUEST: A hundred year ago today, the U.S. National Park Service was formed. I'm going to talking and walking with the man responsible. Where better -- not responsible for forming it, but running it at the moment. He wasn't around a hundred years ago, or not that I'm aware of. We'll talk about the national parks. Happy birthday. After the break.
(COMMERCIAL BREAK)
QUEST: Happy Birthday, U.S. National Parks, which turns 100 today. They've been described as America's best idea, 400 of them. Including such institutions as Yellowstone, the Grand Canyon, and some very small ones, right across the country. The Martin Luther King Memorial is also a park. Look at that, brilliant, from Yellowstone. It was a treat and a pleasure to enjoy. The park service is charged with maintaining these famous landmarks, including those on the Washington Mall. And it was there that I met the director of the National Park Service, Johnathan Jarvis. And I asked him what this historic anniversary meant to him.
(BEGIN VIDEOTAPE)
JOHNATHAN JARVIS, DIRECTOR, U.S. NATIONAL PARK SERVICE: It means a great deal to me. I started in the National Park Service in 1976, which was the bicentennial of the nation. So to begin my career in the bicentennial and to end the career in the centennial is very, very powerful. There's a great sort of patriotic, sort of public service aspect to this that I'm very proud to serve at this time.
QUEST: The parks themselves, 400 --
JARVIS: 412.
QUEST: -- 412 of them, ranging from small monuments to vast acreage. What do they stand for?
JARVIS: What's interesting about the National Park System is that they stand not only for a physical asset, the Grand Canyon or the Statue of Liberty. They stand for an idea as well. The idea being that these places are preserved for the benefit and enjoyment for current and future generations.
QUEST: You have a $12 billion backlog of work that needs to be done.
JARVIS: About half of that backlog is what I consider our transportation assets. Congress has recently passed an appropriations bill that grants the Park Service a fair amount of money to address the transportation assets over the long term. So I'm feeling better about that part of the portfolio.
The other half of the $12 billion are non-transportation assets. That's the Lincoln Memorial, the Vietnam, and the Jefferson and John Adam's home, and the Statue of Liberty. These are physical assets of enormous historical value that are my responsibility. And we are not getting enough money to take care of them.
QUEST: Do you ever imagine a McDonald's statue of liberty or this park brought to you by General Motors? After all, this country was born on capitalism.
JARVIS: There's no way that this National Park Service would ever allow corporate renaming of these icons of a park or one of these memorials. That's just inappropriate. I think it would be a violation of our responsibility to the American people.
QUEST: The preservation against the amount of road traffic, number of cars, number of people. Are the parks becoming loved to death? You've heard that phrase.
JARVIS: I've never liked that phrase. I don't like that phrase. I never like that phrase. I think that the parks are loved to life. That they, because the American people come and experience and become inspired, they give back of their own free will to these places.
QUEST: If you had to give a message to your political pay masters.
JARVIS: This guy standing down there?
QUEST: Yes, what would it be?
JARVIS: My message is that the National Parks are America's best investment. If you're going to invest the taxpayers' dollars in something that returns in many ways to the American people, it returns economically, inspirationally, patriotically, the National Park Service is the place to do that.
QUEST: Absolutely brilliant.
We'll have a profitable moment after the break.
(COMMERCIAL BREAK)
QUEST: Tonight's Profitable Moment more of a muse. America's national parks are 100 years old, and they are absolutely glorious. In the last month I got a chance to visit Yellowstone, Mt. Rushmore and a couple of others as part of business traveler. What I discovered is that idea of America's best idea is true. Others should follow.
And that's QUEST MEANS BUSINESS. In New York, I'm Richard Quest. Whatever you're up to in the hours ahead, I hope it's profitable. I'm off to Las Vegas.
END
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